On Monday, Samsung Electronics (OTC:SSNLF) posted record preliminary second-quarter earnings, underscoring the strength of the AI-driven memory chip market despite higher employee compensation costs.
Samsung Q2 Revenue And Operating Profit Hit New Highs
Samsung said its preliminary operating profit for the April-to-June quarter reached 89.4 trillion won ($58.4 billion), up from 57.2 trillion won (or $37.58 billion) in the first quarter and 4.68 trillion won (or $3.07 billion) in the same period a year earlier.
The South Korean technology giant also reported preliminary revenue of 171 trillion won (or $11.23 billion), compared with 133.87 trillion won (or $8.79 billion) in the previous quarter and 74.57 trillion won (or $4.90 billion) a year earlier.
The results mark a sharp turnaround from last year’s performance and represent one of Samsung’s strongest quarterly showings to date.
Over the past five days, Samsung shares have fallen 12.18%, but the stock remains up 108.33% over the past six months and has surged 376.09% over the past year.
Employee Bonus Costs Weigh On Earnings
Analysts noted that the preliminary figures already account for one-time expenses tied to employee bonus provisions following recent labor negotiations, CNBC reported.
Earlier this year, Samsung reached an agreement with its labor union to eliminate the previous bonus cap of 1,000% of base salary.
Under the new arrangement, the company will allocate 10.5% of its operating profit toward employee bonuses, ending a dispute that followed weeks of union protests seeking a larger share of the company’s earnings.
Detailed Samsung Earnings Due Later This Month
The announcement represents Samsung’s preliminary earnings guidance and includes only topline revenue and operating profit figures.
The company is scheduled to release its full second-quarter earnings report on July 30, when it will provide a detailed breakdown of results across its business divisions, including its semiconductor, mobile and consumer electronics businesses.
Price Action: At the time of writing, Samsung traded at 291,500 KRW ($191) on the South Korean exchange, down 8.33%, according to Benzinga Pro.
According to Benzinga Edge Stock Rankings, Samsung shares maintain a positive price trend across the short, medium and long-term time frames.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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