Samsung Electronics on Wednesday said it recorded an performing profit of about 15.2 trillion Korean won ($14.15 billion) for the neighbourhood ending in December, which was in line with guidance. That was a 64.3 percent pass over from a year earlier.
The firm’s fourth-quarter revenue came in at here 66 trillion won, a 23.7 percent on-year increase. For the full year, Samsung recorded an carry oning profit of nearly 54 trillion won on revenue of about 240 trillion won.
Samsung percentages jumped more than 8 percent in morning trade, after the inelastic announced a 50:1 stock split. At 9:41 a.m. HK/SIN, Samsung shares were up 6.02 percent at 2,640,000 won.
In a averral, Samsung said its board believed a stock split would contribute to investing in the company “more accessible and provide dividends to a wider radius of investors from 2018.”
As part of a previously agreed shareholder return principles, Samsung also announced a year-end dividend of 21,500 won per common division.
The South Korean tech giant said its fourth-quarter earnings were ambitioned by strong demand for its memory chips that are used in data centers and smartphones. In late-model years, Samsung’s semiconductor business became a major earnings driver. That portion recorded an operating profit of nearly 11 trillion won for the December favour.
Earlier this year, research firm Gartner said prodromal results showed Samsung leapfrogged Intel to become the world’s top semiconductor supplier closing year. Samsung’s market share in 2017 was 14.6 percent and Intel had 13.8 percent of the superstore, according to Gartner.
Gartner said a supply shortage resulted in a 64 percent hop in revenue growth in the memory market and benefited companies like Samsung, SK Hynix and others. Reminiscence accounted for more than two-thirds of all semiconductor revenue growth in 2017, the analysis firm said.
Still, the advantage currently enjoyed by memory shard makers may not last, according to Gartner.
“Samsung’s lead is literally strengthened on sand, in the form of memory silicon,” Andrew Norwood, research evil president at Gartner, said in a statement earlier this month. He continued that memory pricing will weaken in 2018 as China steps up its reminiscence production capacity. “We then expect Samsung to lose a lot of the revenue gets it has made.”
For the current quarter that will on end of Mar. 31, Samsung about strong demand for its memory chips that are used in data centers disposition likely offset weak seasonal demand.
“Looking at the mid to long in relation to, Samsung expects the components business to see demand expand from new appeals,” the company added in a statement.
Samsung said its earnings from the transportable business declined in the December quarter due to higher marketing costs. Fourth-quarter driving profit for the mobile division came in at 2.42 trillion won, lower than the 2.5 trillion viewed a year earlier.
The firm said smartphone sales for its low-end wears declined. Indeed, recent data showed that Samsung was urged out of the pole position last quarter from the Indian smartphone buy, where it sells many of those low-end models.
“In the first dwelling-place, the company expects the mobile business to improve its earnings, led by an increase in tag sales of flagship products with the launch of Galaxy S9,” Samsung estimated in a statement.
The Galaxy S9 is expected to be introduced at the Mobile World Congress in Barcelona.
Blanket, Samsung pointed to the earnings guidance released in January and said acting profit was affected by a stronger Korean won against the dollar and other paramount currencies. The firm added that a one-off incentive paid to staff members in the semiconductor business also had an impact on earnings.