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Samsung headquarters in Mountain View, California on October 28, 2018.
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Samsung Electronics reported a rebound in earnings on Thursday, with operating profit more than doubling from the previous quarter due to a recovery in its chip business.
Here are Samsung’s third-quarter results compared to the LSEG SmartEstimate, which is weighted against analyst estimates that are more consistently accurate:
- revenues: 86.1 trillion Korean won vs. 85.93 trillion won
- Operating profit: 12.2 trillion won versus 11.25 trillion won
The South Korean tech giant’s quarterly revenue rose 8.85% from a year earlier, while its first-quarter operating profit rose 32.9% year-over-year.
Samsung shares jumped more than 5% in early Asian trade.
Earnings represent recovery from the quarter of Junewhich was weighed down by a massive decline in Samsung’s chip business. Operating profit rose 160% from June, while revenue increased 15.5% over the same period.
Samsung Electronics, South Korea’s largest company by market capitalization, is a leading supplier of memory chips, semiconductor foundry services and smartphones.
Samsung’s chip business reported a 19 percent rise in sales from the June quarter, with its memory business posting a record high for quarterly sales, driven by strong demand from artificial intelligence.
Third-quarter operating profit also beat Samsung’s guidance of about 12.1 trillion Korean won.
Chip business
Samsung Electronics’ chip business reported an operating profit of 7.0 trillion Korean won in the third quarter, up from 3.86 trillion in the same period last year.
Chip revenue rose to 33.1 trillion won, up from 29.27 trillion won last year.
Samsung’s chip business, also known as the device solutions division, encompasses its memory chip, semiconductor design and foundry business units.
The division achieved record quarterly revenue from expanded sales of its high-bandwidth memory chips, a type of memory used for artificial intelligence computing.
Once the undisputed leader in memory chips, Samsung faces increasing competition as it falls behind the competition SK Hynix in High Bandwidth Memory or HBM.
However Samsung it is reported passed NvidiaQualification tests of an advanced HBM product last month.
A report by Counterpoint Research earlier this month found that Samsung regained the top spot in the memory market ahead of SK Hynix in the third quarter, after falling behind its rival for the first time the previous quarter.
