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

MarketScreener Homepage  >  Equities  >  Nasdaq  >  Micron Technology, Inc.    MU

MICRON TECHNOLOGY, INC.

(MU)
  Report
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsPress ReleasesOfficial PublicationsSector newsMarketScreener StrategiesAnalyst Recommendations

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

10/08/2020 | 04:43am EST
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. 0.48% 116.59 Delayed Quote.58.05%
HUALAN BIOLOGICAL ENGINEERING INC. -1.84% 40.5 End-of-day quote.49.79%
LG CORP. -1.28% 77200 End-of-day quote.4.61%
LG ELECTRONICS INC. -0.57% 87000 End-of-day quote.20.67%
MICRON TECHNOLOGY, INC. 1.26% 64.23 Delayed Quote.17.94%
NOMURA CO., LTD. -1.76% 780 End-of-day quote.-46.39%
NOMURA HOLDINGS, INC. -0.35% 536.6 End-of-day quote.-4.76%
SAMSUNG ELECTRONICS CO., LTD. 2.10% 68000 End-of-day quote.21.86%
XIAOMI CORPORATION 1.72% 26.6 End-of-day quote.146.75%
All news about MICRON TECHNOLOGY, INC.
11/23Micron Technology on Track for Highest Close Since September 2000 -- Data Tal..
DJ
11/18Phoenix okays development deal with TSMC for $12 billion chip factory
RE
11/18Phoenix okays development deal with TSMC for $12 bln chip factory
RE
11/18MICRON TECHNOLOGY : Allocates $50 Million to RBC GAM Impact Investment Strategy ..
AQ
11/18MICRON TECHNOLOGY : Reinforces Commitment to Advance Equal Opportunity for All i..
AQ
11/16Micron Technology Up Nearly 5%, on Track for Highest Close in Over Two Years ..
DJ
11/16MICRON TECHNOLOGY : Allocates $50 Million to RBC GAM Impact Investment Strategy ..
AQ
11/16MICRON TECHNOLOGY : Reinforces Commitment to Advance Equal Opportunity for All i..
AQ
11/16Micron Reinforces Commitment to Advance Equal Opportunity for All in Annual D..
GL
11/16Micron Allocates $50 Million to RBC GAM Impact Investment Strategy to Support..
GL
More news
Financials (USD)
Sales 2021 22 929 M - -
Net income 2021 3 116 M - -
Net cash 2021 2 286 M - -
P/E ratio 2021 24,5x
Yield 2021 0,26%
Capitalization 70 612 M 70 612 M -
EV / Sales 2021 2,98x
EV / Sales 2022 2,31x
Nbr of Employees 40 000
Free-Float 93,0%
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
TrendsBullishBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 36
Average target price 62,53 $
Last Close Price 64,23 $
Spread / Highest target 55,7%
Spread / Average Target -2,64%
Spread / Lowest Target -45,5%
EPS Revisions
Managers
NameTitle
Sanjay Mehrotra President, Chief Executive Officer & Director
Robert E. Switz Chairman
Manish Bhatia Executive Vice President-Global Operations
David A. Zinsner Chief Financial Officer & Senior Vice President
Scott J. DeBoer Executive Vice President-Technology & Products
Sector and Competitors
1st jan.Capitalization (M$)
MICRON TECHNOLOGY, INC.17.94%70 612
TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED47.73%444 614
NVIDIA CORPORATION124.99%327 692
INTEL CORPORATION-21.39%192 811
QUALCOMM INCORPORATED63.30%162 954
BROADCOM INC.23.67%158 091