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Samsung Q3 Earnings to Beat Estimates as Firm Noted in Its Guidance

Published

3 Monaten ago

Oktober 8, 2020

Samsung’s consolidated sales for the third quarter rose by about 6.5% from a year ago coming in at 66 trillion won (Q3 2019 consolidated sales were 62 trillion won).

Samsung Electronics Co Ltd (KRX: 005930) has revealed in its latest guidance that its Q3 earnings likely rose by 58% beating analyst’s expectations. Per a CNBC report, the Samsung Q3 earnings guidance revealed that the company’s operating profit for the quarter likely came in at 12.3 trillion Korean won (about $10.6 billion) as against the expected 10.5 trillion analysts predicted for the September quarter, according to Refinitiv SmartEstimate.

Samsung’s consolidated sales for the third quarter rose by about 6.5% from a year ago coming in at 66 trillion won (Q3 2019 consolidated sales were 62 trillion won). While Samsung did not give a detailed breakdown of its individual business units in the Q3 earnings guidance call, analysts believe the growth in earnings might have been driven by Samsung’s flagship smartphone models including the Galaxy Note 20, the new foldable 5G smartphones as well as the electronics units.

“I think a large part of it seems to be smartphone units were up a lot. We did have a chance to talk to the company briefly this morning and seems like the smartphone units have been very, very strong in Q3,” Mark Newman, managing director, and senior analyst at Bernstein.

The earnings guidance despite its positive detail was unable to cascade into Samsung’s shares which are currently trading at KRW59,700 (0.33% low) at the time of writing.

Samsung Q3 Earnings Fueled by Ongoing Huawei-U.S. Woes

As noted by Newman, the current ban on Huawei imposed by the United States limiting the sales of chips the firm uses in manufacturing its phones must have helped Samsung in ticking the record operating profits and sales for the quarter.

The ban has also given Samsung the edge in gaining the market share in the networking business from Huawei. As Coinspeaker.com reported, last month, the South Korean tech giant said it had won a $6.6 billion contract to supply Verizon with 5G network equipment. Newman also prospected that should the ban plunge Huawei’s operations such that it is unable to meet with its demands, Samsung may see a more upward plunge in sales as users will rather swarm the company’s devices rather than going for iPhone, a notion drawn from the fact that both firms make use of Google’s Android operating system.

Samsung has often reported impressive growths trailing the companies previously reported earnings in both the first and second quarters respectively. Despite the effects of the COVID-19 pandemic, Samsung had a year on year growth of 2.7% in its Q1 earnings report while the company’s Q2 profits amounting to about 8.1 trillion Korean won (around $6.8 billion) represents a 21% year on year growth.

With Samsung’s impressive growth trajectory and the company’s current market advantage fueled by Huawei’s business limitations, the company is agreeably poised for more wins in the near future.

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Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.

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Related Topics:Beat Earnings Estimates Firm guidance Noted Samsung

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Grayscale’s AUM Hits $19B, Up from $16.4B Announced Week Ago

Published

28 Minuten ago

Dezember 29, 2020

While it may be too early to project the possible performance of Grayscale in 2021, the spate of patronage the company recorded in the last two quarters of 2020 looks quite inspiring.

In what confirms the continued embrace of Bitcoin (BTC) and altcoins by institutional investors and the big-money clients, Grayscale’s total Assets Under Management (AUM) has been reported to top $19 billion, a significant uplift from the $16.4 billion reported a week ago. According to a report by CoinDesk, Grayscale hit this AUM milestone on December 28, and Grayscale’s Bitcoin Trust holds by far the largest chunk of the total assets at $16.3 billion.

The recent rally of Bitcoin to new highs as recorded in the past days started as a chain reaction that took its precedent months ago when Wall Street firms and institutional investors began betting big on Bitcoin. The investment made by the likes of MicroStrategy Incorporated (NASDAQ: MSTR), Square Inc (NYSE: SQ), and PayPal Holdings Inc (NASDAQ: PYPL) did not just help put Bitcoin in the limelight through mainstream media, it also prompted the embrace of the digital assets by other firms.

With this chain reaction, the price of Bitcoin continued to soar in response to boosted demand for the coin, and institutions like Grayscale that serves institutional investors benefited from this new demand, and hence, the continued increase in the firm’s AUM. Besides BTC, Grayscale’s Ethereum (ETH) AUM is now worth $2.1 billion, while the bulk of smaller holdings in Litecoin (LTC), XRP, and ZCash amongst others helped Grayscale’s total AUM to reach the new milestone.

Grayscale’s AUM May See More Boost in 2021

While it may be too early to project the possible performance of Grayscale in the coming year 2021, the spate of patronage the company recorded in the last two quarters of 2020 makes the case for improved performance provided the tempo is sustained.

Just as has been noted earlier, the continued embrace of cryptocurrency assets by highly liquid companies will continue to have a positive reaction on the price of Bitcoin, and by extension, this will even make more people pick interest in BTC. As a relatively young asset class, Bitcoin and altcoins have tremendous room to grow as the adoption rate is still not optimized owing to certain regulatory provisions in most countries, Grayscale and other hedge funds have enough room to compete for new clients entering the space.

With Grayscale been among the institutions at the forefront of helping to drive the acceptance of BTC, ETH, and other digital currencies, enjoying the dividends of its works through impressed AUM figures does not come as much of a surprise.

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eToro Said to Be in Talks With Goldman About Possible $5B IPO: Report

Published

1 Stunde ago

Dezember 29, 2020

The crypto trading/investment management platform is also considering the possibility of a merger with a special purpose acquisition company.

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Market

Altcoin Rally Dimming Bitcoin’s Shine, Polkadot Gains 34% in One Week

Published

2 Stunden ago

Dezember 29, 2020

Polkadot (DOT) saw daily gains of 22.5% wrapping up an impressive week with an almost 34% rise in its value.

Bitcoin bullish run looks to have come to a halt amidst an altcoin rally which has seen relatively lower coins put up impressive performances in the past few weeks. Bitcoin dominance is gradually fading as many experts believe the biggest digital coin is backing down as some top altcoin are showing strong “moves” or signals.

Bitcoin hit an all-time high over the weekend, the third time its price has done so in just over 2 months. The price of the biggest digital coin touched $28,400 on December 27, before a lightning drop took it to $27,000 just hours of that incredible feat.

Bitcoin failed to hold onto the $27,000 mark as its price further dropped to $26,000 a day after and is now testing lower levels centered on $26,000 as immediate support. Reports from crypto exchanges revealed BTC/USD trading at lows of $25,830 during the early hours of December 29.

While Bitcoin has seen red over a couple of days, some altcoins are putting up impressive numbers, giving off signals of a strong altcoin rally. Despite XRP’s current issues, the altcoin market is showing glimpses of its glory days as some digital coins are poised to see major gains over the next couple of weeks. Ethereum (ETH) is at the forefront of the rally, with its price climbing above $700 for the first time since May 2018.

Polkadot (DOT) also saw daily gains of 22.5% wrapping up an impressive week with an almost 34% rise in its value. The coin is now the seventh-largest token by market cap. Kusama (KSM), a cousin of Polkadot, also saw its price gain 46% last week, pushing its price from $43.1 to $63. The digital token is currently trading at $56 but experts are adamant a breakout above $65 is possible as the token has rebounded off the 20-day exponential moving average ($50.90)

Speaking on the possibility of a long term altcoin rally, analyst Van de Poppe stated that altcoins are next in line to see greens. He added that the next “impulse wave” on Bitcoin next year should be able to take the market to $40,000 or $50,000, but until then, the possibility of a continuance altcoin rally is very much likely.

Although many factors could be in play with regards to the latest Bitcoin price dip, it’s recent fallout with Ripple’s XRP leads the way. Ripple was hit with a lawsuit from the United States Security and Exchange Commission (SEC) and subsequently suffered drops that left its price in a pit. XRP, the fourth-largest cryptocurrency by market cap, is now trading at $0.20 as news broke that Coinbase, a major US cryptocurrency exchange has decided to suspend its trading from next month.

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Crypto fanatic, writer and researcher. Thinks that Blockchain is second to a digital camera on the list of greatest inventions.

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