Samsung Electronics Co. (KS) shares rose sharply in early morning trading as a result of the company forecasting an 80% jump in operating profit in the third-quarter. Samsung forecasts that the company’s operating profit will be $6.3 billion (7.3 trillion won), beating estimates of a 6.7 trillion won profit.
Samsung stock prices jumped 8.7% on the day; the stock’s biggest gain in 7 years. The company is still down 5.7% on the year despite today’s increase. Analysts were concerned that the company’s earnings would fall as mobile profits continue to decline, but that was not the case in Q3.
Smartphone and memory chips helped the company increase total revenue in Q3 by 7.5%.The company has not made further announcements about their performance during the quarter and is expected to release their full results at the end of October.
A major factor for the company’s success was a 12% depreciation against the dollar. Analysts suggest the currency rate added 300 billion won to the company’s operating profit.
It’s widely accepted that Samsung’s chip division will be the top contributor to the company’s profit when reports are released.
Samsung has been struggling to regain market share with the Galaxy Note 5 being a major success for the company in the third-quarter.