Samsung has published its quarterly earnings guidance for Q1 2022. The Korean behemoth is estimating pretty strong revenue and operating profit for the first three months of the year. It expects to post its highest-ever quarterly earnings during the January to March 2022 period.
According to the report, Samsung is estimating consolidated sales revenue of approximately KRW 77 trillion (roughly $63.2 billion) for Q1 2022. That’s up 17.8 percent from KRW 65.39 trillion it made during the same period last year. The company had posted an all-time high quarterly consolidated revenue of KRW 76.57 trillion in Q4 2021, i.e. the last quarter. It is now looking to top that in the first quarter of 2022.
Samsung’s estimated operating profit of KRW 14.1 trillion (roughly $11.6 billion) for Q1 2022 is also higher than what it made last quarter (KRW 13.87 trillion). It is a staggering 50.3 percent increase from the same period last year. Perhaps that’s its highest first-quarter profit since it made KRW 15.64 trillion in Q1 2018. The number for the first quarter of 2022 also beats the market consensus of KRW 13.2 trillion, Korean media reports.
Samsung may have made good money from semiconductor sales in Q1 2022
Since it’s just the earnings guidance and not the full earnings report, Samsung doesn’t break down the numbers for each of its business divisions. It will publish the full report later this year.
However, industry watchers suggest the semiconductor and smartphone businesses led the company’s growth. According to the Korean publication Yonhap News, Samsung’s semiconductor division may have made KRW 25 trillion in sales and KRW 8 trillion in operating profit this past quarter. These numbers respectively mark a 30.9 percent and 137.4 percent increase from Q1 2021.
The staggering growth in profit is a result of the increased prices of memory chips. It’s the core business of Samsung’s semiconductor division. The Korean brand is the world’s largest vendor of memory chips.
In the smartphone division, Samsung’s Galaxy S22 series flagships have been seeing overwhelming demand all over the world since they were announced in February. The recent GOS (game Optimization Service) controversy is said to have affected sales to some extent but not by much. This sky-high demand means the Korean behemoth may have made good money from the mobile business as well.
Analysts expect 2022 to be Samsung’s best year ever financially. The company posted its highest-ever annual revenue of KRW 279.6 trillion in 2021. But it could surpass that figure by a comfortable margin this year. We will let you know when Samsung publishes its full earnings report for Q1 2022.