Samsung has announced its earnings guidance for Q1 2024, with expected sales to range between KRW 70 and 72 trillion ($51-$53 billion). What’s even more impressive is the projected operating profit – between KRW 6.5 and 6.7 trillion (just under $5 billion) – a tenfold increase compared to the same period last year.
| (all units in KRW / USD) | Q1 2024 Earnings Guidance | Q3 2023 | QoQ Change | Q1 2023 | YoY Change |
| Sales | 71 trillion / 52 billion | 67.78 trillion / 50.09 billion | 4.75% | 63.75 trillion / 47.11 billion | 11.3% |
| Operating profit | 6.6 trillion / 5 billion | 2.82 trillion / 2.08 billion | 134% | 0.64 trillion / 470 million | 931% |
The significant increase in profits is attributed to the growing demand for high-bandwidth memory (HBM) used in AI chipsets, as reported by Reuters. An analyst mentioned to the agency that the improved inventory valuation of NAND chips could also impact margins positively.
Moreover, the initial response to the AI features on the Galaxy S24 devices is promising. Although details are limited, the anticipated surge in sales of the flagship phones is expected to contribute to the company’s profits.
The earnings guidance represents Samsung’s final estimate to Korean authorities and regulators. The comprehensive report is set to be released on the last Thursday of this month, providing a detailed breakdown of profits and sales by division.