Samsung predicts record-breaking profit for Q1 2017

 

Samsung Electronics’ Q1 2017 earnings guidance is out, and the company is predicting an operating profit of around 9.9 trillion won (about $8.7 billion) off 50 trillion won (about $44 billion) in revenue. That would be its biggest Q1 profit figure ever, coming close to its overall profit record set in Q3 2013 and representing a roughly 50 percent increase on the same period last year when Samsung made 6.68 trillion won. 

Despite the predicted year-on-year profit increase, however, it looks like sales will be essentially flat: Samsung’s Q1 2016 revenue was 49.78 trillion won. But that might not be such a bad sign, considering the Galaxy S7 launched in Q1 last year and the Galaxy S8 isn’t going on sale until later this month — not to mention the fact that Samsung doesn’t have a new Galaxy Note on sale right now. The major corruption scandal that ensnared the company's leader Lee Jae-yong doesn't appear to have had much impact, either.

For a more nuanced breakdown of Samsung’s performance, we’ll have to wait until the full earnings report is released in a few weeks.

Clarification, April 7th, 5AM ET: Updated article to clarify that Samsung’s profit forecast would represent its strongest quarter since Q3 2013 and its strongest Q1 quarter ever, as opposed to its strongest quarter ever overall. 

The article was published on : theverge