Samsung Stocks Hike as Its Q3 Revenue Hits a 3-Year High

On Thursday, the stocks of Samsung Electronics Co. hiked after reporting its highest quarterly profit in three years.

The world’s top maker of memory chips and smartphones extended 1.85% or 1.11 points to $60.95 per share. Additionally, it opposed its decline of 1.41% to $59.84 yesterday. 

Remarkably, its third-quarter revenue edged up 10.00% to a record-high of $63.26 billion from the same period last year. 

In line with the upbeat data, net profit edged up by 31.00% to $10.52 billion. 

Moreover, its operating profits significantly climbed 28.00% to $13.48 billion. Additionally, it included an 82.00% to $8.64 billion year-over-year surge in its chip segment. 

Subsequently, the soaring memory chip prices and the profitability of its chip-contract manufacturing business boosted the operating profit.

Meanwhile, its mobile division fell 24.00% to $2.87 billion as sales of foldable smartphones were implicated by marketing costs.

Consequently, Samsung warned that the persisting worldwide component shortage would affect the chip demand in the fourth quarter. 

In addition, the warning is rooted in the supply chain issues such as the scarcity of chip parts, logistics snarls, and power cuts in China.

Despite the uncertainties, Samsung still expected its sales of the server and personal computer chips to be robust in 2022. 

Correspondingly, analysts expected that the Q4 earnings of the South Korean giant would be levelled or below its third-quarter result. 

Furthermore, Samsung also focuses on a more advanced chip-making process that could be a growth driver in the succeeding results.

On the other hand, its smaller rival SK Hynix posted a more bullish note as it forecasted steady demand for memory chips. 

Asia-Pacific Stocks Drop as Samsung Edges Up

Meanwhile, stocks in the Asia-Pacific region eased from their gains as the Bank of Japan kept its monetary policy.

In South Korea, KOSPI plummeted 0.53% or 15.94 points to $3,009.55 per share despite the strong earnings result of Samsung.

Similarly, Japan’s Nikkei 225 index lost 0.96% or 278.15 points to $28,820.09 per share.

Also, the broader TOPIX index dwindled by 0.70% or 14.15 points to $1,999.66 per share.

In China, the benchmark Shanghai Composite fluctuated 1.23% or 43.89 points to $3,518.42 per share.

Correspondingly, the Shenzhen Component index tumbled 1.03% or 148.69 points to $14,244.82 per share.

In Australia, the S&P/ASX 200 index shed 0.25% or 18.30 points to $7,430.40 per share.

Overall, MSCI’s broadest index of Asia-Pacific shares outside Japan plunged 0.31% or 2.02 points to $653.84 per share.

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