Samsung Electronics, is set for a remarkable turnaround as it anticipates a staggering surge in operating profit for the first quarter of 2024.
This promising outlook offers a glimmer of hope following a challenging year in 2023.
According to an earnings guidance released on Friday, Samsung projects its operating profit to skyrocket to 6.6 trillion Korean won ($4.9 billion) in the January-to-March quarter.
This figure marks a monumental leap from the 0.64 trillion won reported during the same period last year. The forecast has exceeded the consensus estimates of 5.4 trillion won from FactSet.
Concurrently, sales are expected to have surged by over 11% to 71 trillion won.
While Samsung did not provide detailed insights into the factors driving this remarkable performance, the significant upturn is anticipated to be primarily fueled by a resurgence in demand for its consumer devices and memory chips.
The company, hailed as the world's largest memory chip maker, is set to capitalize on the growing appetite for cutting-edge technology.
The buoyant forecast stands in stark contrast to the preceding year, which witnessed Samsung struggling with four consecutive quarters of declining profits. A combination of subdued consumer demand and sluggish chip sales cast a shadow over its financial performance in 2023.
However, Samsung is feeling optimistic about 2024, especially with the expected increase in demand for mobile devices. This enthusiasm is fueled by the upcoming release of new products equipped with AI-powered features.
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