Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MICRON TECHNOLOGY, INC.

(MU)
  Report
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

Samsung Electronics profit likely at two-year high after Huawei orders, phone recovery

10/08/2020 | 04:43am EDT
FILE PHOTO: The logo of Samsung Electronics is seen on a dish washer at its store in Seoul

SEOUL (Reuters) - Samsung Electronics Co Ltd said its third-quarter profit likely jumped 58% to the highest in two years, beating analysts' estimates as U.S. restrictions on China's Huawei boosted the South Korean tech giant's phone and chip sales.

U.S. action against Huawei Technologies Co Ltd [HWT.UL] has dampened demand for its phones outside of China, giving Samsung a leg up, analysts said.

The Chinese firm has also hurried to order more chips from Samsung after Washington moved to choke its access to commercially available chips from mid-September.

Samsung said on Thursday that operating profit was likely 12.3 trillion won ($10.6 billion) for the three months ended September, well above a Refinitiv SmartEstimate of 10.5 trillion won. It would be the strongest result since 17.57 trillion won in the third quarter of 2018.

Revenue likely rose 6% from the same period a year earlier to 66 trillion won, the company said.

Samsung released only limited data in Thursday's regulatory filing ahead of the release of detailed earnings figures later this month.

"It seems Huawei's impact on Samsung's chip business was bigger than the market expected, and there was a big surprise in the smartphone and home appliance businesses," said CW Chung, head of research at Nomura in Korea.

MOBILE PROFIT BOOST

Samsung was expected to post its biggest smartphone profit in at least four years, analysts said, as it gained market share from Chinese rivals and the coronavirus pandemic helped cut marketing costs.

Washington says Huawei is a vehicle for Chinese state espionage and has tightened restrictions on the firm, hurting demand for Huawei phones in Europe and other countries and boosting Samsung's sales at a time when markets outside China are recovering from COVID-19 lockdowns, analysts said.

"Many consumers were reluctant to buy Huawei phones because they thought that Huawei may discontinue phone sales and services because of U.S. restrictions," Tom Kang, an analyst at Counterpoint said, adding that Samsung has boosted sales of mid- and low-end phones.

A surge in anti-China sentiment in India following a border clash in June is also seen as providing a boost to Samsung, which competes with Xiaomi and other Chinese rivals there.

Samsung's home appliance business also got a lift from the pandemic lockdowns, which spurred consumers to spend more on appliances such as air purifiers.

Consumer electronics rival LG Electronics also said on Thursday it likely made its largest third-quarter operating profit ever of 959 billion won, which analysts attributed to strong home appliance and TV sales.

CHIP PRICES BOTTOMING OUT

Samsung's shares have gained about 7% so far this year.

They ended down 0.3% on Thursday in a slightly firmer overall market <.KS11>, with analysts pointing to memory chip prices and the uncertain Q4 outlook for the muted response.

Analysts doubted whether Samsung's fourth-quarter profit could beat the third, as memory chip prices are seen bottoming out and a new Apple iPhone model is expected on the market.

U.S. rival Micron Technology Inc, which posted a market-beating quarterly profit last month, forecast lower-than-expected sales in the following quarter, as it had not yet obtained new licenses needed to sell its memory chips to Huawei.

Market researcher Trendforce expected DRAM chip prices to decline by about 10% in the year-end quarter, as demand from the server industry has yet to make a noticeable recovery.

This comes even as Huawei rivals like Xiaomi, OPPO, and Vivo are all urgently stocking up on key components, in turn providing some support for the mobile DRAM chip market, Trendforce said.

($1 = 1,157.3700 won)

(Reporting by Joyce Lee; Editing by Christopher Cushing, Richard Pullin and Kim Coghill)

By Joyce Lee and Hyunjoo Jin


© Reuters 2020
Stocks mentioned in the article
ChangeLast1st jan.
APPLE INC. -1.01% 130.46 Delayed Quote.-0.68%
HUALAN BIOLOGICAL ENGINEERING INC. -1.50% 36.14 End-of-day quote.-14.44%
LG CORP. -0.48% 103500 End-of-day quote.7.83%
LG ELECTRONICS INC. 1.62% 157000 End-of-day quote.16.30%
MICRON TECHNOLOGY, INC. -4.58% 76.95 Delayed Quote.7.26%
NOMURA CO., LTD. -1.45% 950 End-of-day quote.11.50%
SAMSUNG ELECTRONICS CO., LTD. -0.49% 80500 End-of-day quote.-0.62%
XIAOMI CORPORATION 1.77% 28.8 End-of-day quote.-13.25%
All news about MICRON TECHNOLOGY, INC.
01:39pShares Fall Midday With Government Bond Yields While Dollar Index Hits Two-Mo..
MT
01:29pMIDDAY REPORT : US Stocks Fall With Government Bond Yields While Dollar Index Hi..
MT
10:03aMICRON TECHNOLOGY  : Cleveland Research Downgrades Micron Technology to Neutral ..
MT
06/17MICRON TECHNOLOGY  : Celebrates Juneteenth With Our Black Employee Network
PU
06/17U.S. senators propose 25% tax credit for semiconductor manufacturing
RE
06/16MICRON TECHNOLOGY  : Idaho CEO Letter on the Importance of Respect and Inclusion
PU
06/10MICRON TECHNOLOGY  : S&P Revises Micron Technology Outlook to Positive From Stab..
MT
06/08MICRON TECHNOLOGY  : Hisashi Hisamatsu on Boosting Battery Life With 1α Mo..
PU
06/07MICRON TECHNOLOGY  : One Plus One Equals Three – Micron and Lightbits Labs
PU
06/07Some Companies Are Taking Longer to Pay Suppliers Despite Recovery
DJ
More news
Financials (USD)
Sales 2021 27 194 M - -
Net income 2021 5 414 M - -
Net cash 2021 3 082 M - -
P/E ratio 2021 16,9x
Yield 2021 0,21%
Capitalization 90 431 M 90 431 M -
EV / Sales 2021 3,21x
EV / Sales 2022 2,24x
Nbr of Employees 40 000
Free-Float 93,1%
Chart MICRON TECHNOLOGY, INC.
Duration : Period :
Micron Technology, Inc. Technical Analysis Chart | MU | US5951121038 | MarketScreener
Technical analysis trends MICRON TECHNOLOGY, INC.
Short TermMid-TermLong Term
TrendsNeutralNeutralBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus BUY
Number of Analysts 33
Average target price 114,24 $
Last Close Price 80,64 $
Spread / Highest target 105%
Spread / Average Target 41,7%
Spread / Lowest Target -51,6%
EPS Revisions
Managers and Directors
NameTitle
Sanjay Mehrotra President, Chief Executive Officer & Director
David A. Zinsner Chief Financial Officer & Senior Vice President
Robert E. Switz Chairman
Scott J. DeBoer Executive Vice President-Technology & Products
Manish Bhatia Executive Vice President-Global Operations
Sector and Competitors
1st jan.Capitalization (M$)
MICRON TECHNOLOGY, INC.7.26%90 431
TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED13.77%565 082
NVIDIA CORPORATION42.91%464 939
INTEL CORPORATION14.85%230 893
BROADCOM INC.7.61%193 302
TEXAS INSTRUMENTS14.38%173 299