Samsung expects its operating profit in the second quarter to reach 8.1 trillion won, increasing 22.7 percent from 6.6 trillion won last year. This margin is due to strong demand for server chips, offsetting a dip in its smartphone sales.
However, Samsung predicts its second-quarter sales to drop by 7.3 percent from a year earlier to 52 trillion won. This value is slightly higher than the market forecast of 51.6 trillion won. The South Korean company also expects its operating margin to reach 15.6 percent in the second quarter, highest since the last quarter of 2018.
The company will reveal detailed earnings later this month, breaking down the performance of each business division.
According to some analysts, Samsung’s semiconductor business elevated its overall performance in the second quarter. The ongoing pandemic forces people to stay-at-home and resulting in a higher demand for server chips from data centers.
Analyst forecast Samsung’s chip business to have gained an operating profit of around 5 trillion won in the second quarter. This number is the highest since the 7.7 trillion won collected in the fourth quarter of 2018.
Samsung’s mobile business is currently suffering a decline in earnings. For the consumer electronics business, the company is expecting a small second-quarter profit. However, the profit might increase as major economies reopened their markets and people might be spending more in the upcoming weeks.