- Samsung Electronics Co, Ltd SSNLF announced its earnings guidance for the second quarter of 2022.
- Samsung expects consolidated sales of 77 trillion Korean won, up 20.9% year on year (versus actual sales of 63.67 trillion Korean won in Q2 2021).
- It expects a consolidated operating profit of 14 trillion Korean won, up 11.4% Y/Y (versus an actual operating profit of 12.57 trillion Korean won in Q2 2021).
- Also Read: US Canvasses Netherlands To Severe Chipmaking Ties Between ASML And China: Pros And Cons
- Chipmakers like Samsung and Taiwan Semiconductor Manufacturing Company Ltd TSM see a demand correction from the pandemic and government stimulus-induced demand surge for electronic gadgets.
- The Ukraine crisis and inflation also have restricted consumer spending on items.
- The industry expects a challenging second half (as voiced by Advanced Micro Devices, Inc AMD and Micron Technology, Inc MU) as inflation restricts consumer spending for gadgets and the cryptocurrency market declines.
- According to Counterpoint Research, Samsung will likely have shipped 62 million - 64 million units in Q2, down from the previous estimates of 68 million smartphones.
- Piper Sandler saw DRAM, and NAND pricing decline, affecting Micron as mobile and notebook end-markets face continued weakness based on inSpectrum's June monthly memory contract pricing data.
- Analysts saw server chip demand as the only bright spot, Reuters reports.
- Amazon.com Inc AMZN, Microsoft Corp MSFT, Alphabet Inc's GOOG GOOGL Google and Meta Platforms Inc's META continued chip purchase to meet cloud demand so far helped to shield Samsung's profits.
- Price Action: TSM shares traded higher by 3.23% at $78.00 in the premarket on the last check Thursday. MU shares traded higher by 1.34% at $58.14, and AMD shares traded higher by 1.34% at $76.36.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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