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Samsung Results In Line With Expectations

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Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930) reported its latest earnings results, and there were no big surprises there. As a result, BMO Capital Markets analysts say the report was neutral to the company’s share price, and they continue to rate the stock as Outperform with a KRW 1.6 million price target.

Samsung Results In Line With Expectations

Samsung reports results

For the September quarter, Samsung reported total revenue of KRW 59.1 trillion, which is a 13% increase year over year. Operating income or margin was KRW 10.2 trillion or 17.2%. According to BMO analysts Tim Long and Ambrish Srivastava, the Korean electronics company has never been more profitable.

They report that Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930)’s Mobile segment was in line with estimates and that they see upside to profitability if the company can improve efficiency in marketing. They said high-tier device sales were flat just as they expected and that mass market devices drove the bulk of Samsung’s growth. In addition, they said Semi profitability was close to their model.

No surprises from Samsung this time

There were no surprises in Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930)’s September quarter results, and there may be few in December’s results as well. The BMO analysts are expecting slight unit growth and flat or slightly improved average selling prices for the December quarter.

They remain positive on the handset sector and note that Samsung remains well-positioned in the smartphone industry. They also suggest that Semis could continue adding to the Korean company’s profitability.

Breaking down Samsung’s results

For Samsung’s IT and Mobile Communications segment, the company reported KRW 36.6 trillion. The Mobile sub-segment had sales of KRW 35.2 trillion. The analysts noted above-average sequential growth for Samsung in tablets, driven largely by the refresh of its high-end portfolio. Management guided for low-single-digit smartphone growth for the December quarter.

Sales for Samsung’s Semis division added up to KRW 9.7 trillion, a sequential increase of 12%. For Consumer electronics, the company reported KRW 12.1 trillion.

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