Samsung shares jump on bright Q2 earnings outlook

(ATTN: UPDATES throughout with stock reaction, earnings consensus, analysts'
comments, details; CHANGES headline)
SEOUL, July 6 (Yonhap) -- Shares of Samsung Electronics Co. jumped nearly 5
percent in morning trading session on Monday as the company expected to report a
up to five-fold surge in operating profit for the April-June period from the
previous quarter.

In a statement, the world's largest maker of computer memory chips said it
predicted operating profit for the second-quarter of this year to range from 2.2
trillion won (US$1.7 billion) to 2.6 trillion won, compared with some 470 billion
won in the previous quarter.
The estimated operating profit was well above the forecasts of most analysts.
Samsung was expected to post an operating profit of 963 billion won in the second
quarter, according to the latest forecast by FnGuide Inc., a financial
information service provider that tracks earnings forecasts of South Korean
companies.
Shares of Samsung Electronics gained as much as 4.49 percent and last traded
626,000 won per share, up 4.16 percent, at 10:56 a.m. in Seoul.
"I assumed that Samsung Electronics could post such strong profit as earnings
from all segments, including semiconductor and liquid crystal display, have
significantly improved," said Kim Young-joon, an analyst at LIG Investment and
Securities Co.
Samsung also predicted sales for the second-quarter to total between 31 trillion
won and 33 trillion won, without providing information on its outlook for net
profit.
In South Korea, many analysts view operating earnings as a more accurate
indicator showing a company's performance because net earnings include taxes,
dividend payments and others.
In the first quarter of this year, Samsung's net profit plunged 72 percent from a
year ago to 619 billion won on sales of 28.9 trillion won.
Since the final quarter of last year, Samsung, which is also the world's largest
maker of liquid crystal displays and the second-largest maker of mobile phones,
has been hit hard by the global economic slump as it dampens demand.
Some analysts say Samsung may post better earnings in the coming quarter if the
South Korean currency remains weak against the U.S. dollar.
"If the current foreign exchange rate is maintained, the company's third-quarter
earnings will improve even more," said Ban Jong-wook, an analyst at Daishin
Securities Co.
Monday's announcement was Samsung's first earnings guidance ahead of its
quarterly earnings release. Samsung is scheduled to announce the results of its
second-quarter earnings on July 24.
"Samsung expects that providing earnings guidance will help not only minimize
speculation in the market but also help enhance company transparency and provide
investors with a more accurate estimate," the company said in a statement.
(END)