Consumer electronics giant Samsung on Friday predicted a near 50 percent jump in its fourth-quarter operating profit, with the components business expected to offset declines in its mobile unit that was marred by discontinuation of the fire-prone Galaxy Note 7 handsets.
In a regulatory filing, Samsung said it expected consolidated operating profit for the October-December 2016 quarter to be 9.2 trillion won ($7.8 billion), up from the 6.14 trillion a year earlier, and beating a Thomson Reuters StarMine SmartEstimate forecast of 8.2 trillion won.
The fourth quarter profit number, if realized, would be the highest profit figure in three years, according to Reuters. But Daniel Kim, an analyst at Macquarie Equities Research, pointed out on CNBC's "Squawk Box" that the major difference was back in 2013, that profit growth was driven by the mobile phone division.
Investors reacted positively to the guidance, with Samsung shares climbing more than 2 percent in morning trade on Friday, beating the broader benchmark index.
Analysts agreed Samsung's business diversity and competitiveness in areas of flash memory, memory and OLED displays helped overcome the bungled Note 7 recall and will continue to support it in 2017.
"The Semiconductor division should be the main source for better-than-expected earnings," Daniel Yoo, head of global strategy at Kiwoom Securities, told CNBC's "The Rundown" before the earnings guidance was released.
Samsung's components business supplies memory chips and display panels to other companies, including prominent smartphone makers such as Apple.