Samsung (SSNLF), the world’s largest smartphone maker, predicts its profit jumped more than 20% last quarter, suggesting that the company has managed to withstand the fallout from the coronavirus pandemic.
On Tuesday, the South Korean conglomerate said it expects to make an operating profit of approximately 8.1 trillion won ($6.8 billion) for the three months that ended June.
That’s almost 23 percent up from a year ago the same period. The estimates also beat about a 2 percent profit slump predicted by analysts polled by the Refinitiv data provider.
Samsung said it expects sales will fall by about 7% to 52 trillion won ($43.6 billion). Analysts polled by Refinitiv had predicted 51.4 trillion in sales ($43 billion).
Shares in Samsung opened up 1.5% in Seoul but later reversed those gains. The stock ended the day down by 2.9%. South Korea’s Kospi Index (KOSPI) closed down 1%.
Samsung, which supplies key parts like display panels and chips for companies such as Apple (AAPL) and Huawei, is among the first of the big tech companies. It aims to report earnings for the quarter.
In addition, its full report will be viewed as a bell-weather for how tech giants are withstanding the pandemic.
Samsung said the estimates “include a one-time gain related to the display business.” It did not otherwise elaborate on earnings but will report full results for the second quarter at the end of this month.
On the other hand, analysts say the consumer electronics division included smartphone and TV sales is still profitable. The reason is an ongoing work and travel restrictions.
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