Tech

Samsung third-quarter profit rises 21 percent, in line with guidance

Key Points
  • Samsung Electronics on Wednesday said it recorded an operating profit of 17.57 trillion won (about $15.5 billion) for the quarter ending in September. That was up 21 percent on-year and in line with guidance.
  • The world's largest smartphone maker's consolidated quarterly revenue came in at 65.46 trillion, which was a 5.5 percent increase from a year ago.
The Samsung Electronics  logo is displayed in a window at the company's Seocho office building in Seoul, South Korea.
SeongJoon Cho | Bloomberg | Getty Images

on Wednesday said it recorded an operating profit of 17.57 trillion won (about $15.5 billion) for the quarter ending in September. That was in line with guidance and represented a jump of around 21 percent from a year earlier.

The world's largest smartphone maker said its consolidated quarterly revenue came in at 65.46 trillion, which was a 5.5 percent increase from a year ago.

Samsung said its results were driven by strong sales and improving production yield in its memory products, which are used in smartphones and data centers, as well as higher demand for high-end organic light-emitting diode (OLED) display panels from major customers.

Shares were up 0.94 percent in morning trade, outpacing the main Kospi index in South Korea.

Despite the jump in profits, Samsung said its mobile business saw a drop in earnings — even with solid sales of the flagship Galaxy smartphones.

For the fourth quarter, the tech giant said it predicted overall earnings across the company to decline amid a period of weak seasonal demand for semiconductors.

Earnings from memory chips are set to decline but demand for OLED panels from major customers are set to remain strong, the company said.

It added that, in the smartphone segment, increasing marketing expenses during the year-end season will affect profitability despite a predicted rise in shipments.