Samsung Q3 Profits Ahead of Street Estimates

October 07 00:00 2011

New York, October 7 (RainbowNewsLine.com) – Samsung Electronics Co has produced unexpected operating profit results for Q3 beating analysts’ estimates. Smsung’s Galaxy smartphones have witnessed high demand which has overshadowed sales of semiconductors and displays. The South Korean company reported today that the operating profit in the three months ended September was 4.2 trillion won ($3.6 billion) which is higher than the average estimate of analysts of 3.7 trillion won. It had registered a profit of 4.86 trillion won a year earlier.

After joining HTC Corp. and taking advantage of the popularity of mobile devices running on Google’s Android system, Samsung’s shares rose to a three-month high. Its falling profit from its biggest business of memory chips and flat-screen panels was offset by its gains in smartphones, where it is just behind Apple Inc (NASDAQ: AAPL)

Lee Seung Woo, a Seoul-based analyst at Shinyoung Securities Co. said “I’m quite amazed, it seems like there was a big surprise on the smartphone side.”

Samsung stock went up by as much as 3 percent to 881,000 won in Seoul which was the highest intraday level since July 8, before trading 2.6 percent higher at 9:12 a.m. The benchmark Kospi index rose 2.9 percent. Samsung’s sales rose 1.9 percent to 41 trillion won.

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