Co Ltd said on Friday its third-quarter operating profit likely almost tripled from a year earlier to a new record, beating analyst estimates, as strong memory chip prices fattened margins.
"The company has been riding a global semiconductor boom", he said, adding the semiconductor business alone is believed to have contributed 10 out of the 14.5 trillion won operating profit.
Revenue likely rose 29.7 percent from a year earlier to 62 trillion won, versus the analysts' average forecast of 62.1 trillion won.
The South Korean company did not elaborate on its performance and will disclose detailed earnings in late October. So strong is this demand that Samsung, the world's leading flash memory maker, has been able to secure both high prices and high volumes for its flash products, with some analysts estimating a profit margin of nearly 50 percent. The company said it will announced its final third quarter results later this month.
Its information and mobile sector is estimated to have brought in three trillion won operating profit and the display business one trillion won. Analysts have tipped its chip division to propel the firm to record overall profit.
"The release of new models, including the iPhone X by rival Apple Inc., could weigh down on the mobile business, but it will at the same time help Samsung's parts business", said Doh Hyun-woo, analyst at Mirae Asset Daewoo Securities Co.in a report.
As for the fourth quarter, Samsung Electronics is expected to continue its growth, backed especially by its highly competitive chip business. Lee was convicted of corruption and sentenced to five years in prison in August.
"Currently, Samsung is only harvesting from rich soil", an anonymous Samsung executive said.
Shares of Samsung Electronics closed at 2,740,000 won Thursday, up 0.29 percent from the previous session. Samsung announced its earnings guidance before the market opened Friday.