28 Apr 2022
Samsung Earnings Surge Expectations, Helped by Strong Semiconductor Demand
The Index Today
Samsung Electronics Co. recorded a growth spurt in first quarter earnings spurred by robust sales of its high-end smartphones and memory chips. Despite that, the company cautioned against potential upcoming risks stemming from the U.S. rate hikes and concerns surrounding geopolitical conflicts.
As per Bloomberg News, the electronics giant’s net revenue surged over 50% to 11.13 trillion won ($8.8 billion) in the three months leading up to March. However, its shares dipped by almost 1% in Seoul, having fallen by 17% this year, as of Wednesday.
However, the company is also ringing the warning bell over potential risks caused by upcoming interest rate hikes by the U.S. Federal Reserve, the ongoing Ukraine-Russia conflict, as well as the economic impact of prolonged COVID-19 lockdowns in China. As a result, Samsung did not post a fiscal forecast for 2022.
Jinman Han, Samsung’s Executive Vice President and Head of Memory Global Sales and Marketing contended, “It is an immense challenge to predict the duration or market ripple effects of various macro issues such as the Russian-Ukraine war and global inflation.”