Samsung Electronics Q3: Earnings Surprise Outlook Led by HBM
Department Head Lee Hwa-jin predicted that Samsung Electronics' third-quarter earnings could deliver a surprise.
He explained that commodity memory prices surged sharply from September of last year through the second-quarter earnings, with price increases of 90% in the first quarter and 50 to 60% in the second. However, he expects that in the third quarter, HBM (high-bandwidth memory) rather than commodity memory will be the main core of earnings.
Department Head Lee predicts that the stock could rise in October, before the earnings release, as the move is priced in early, and that a second rally could follow after the results are disclosed, with the verdict of a 'blockbuster' result. He also analyzed that Samsung Electronics may raise its free cash flow (FCF) estimates and announce shareholder return policies such as special dividends.
