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Samsung Electronics exceeded market expectations Tuesday, forecasting record first-quarter sales and predicting profits would be better than initially projected. The firm is the flagship subsidiary of South Korean giant Samsung Group, the largest of the family-controlled conglomerates that hold significant influence in South Korea's economy.
The tech giant said in a regulatory filing that its January to March operating profits were expected to rise to 6.6 trillion won ($4.5 billion), down 0.15 percent from a year earlier but up nearly two percent compared to the previous quarter.
This was almost 34 percent higher than the average estimate, according to South Korea's Yonhap news agency, which cited its own financial data firm. Sales were also seen as increasing to 79 trillion won, a near 10 percent jump from a year earlier, marking the highest first quarter figure on record and the second-highest quarterly revenue ever.
The company did not disclose its net income or the detailed earnings of its business divisions.
Analysts credit the high figures to record sales of the new Galaxy S25 series phone, which was released in February. The series became the fastest ever Galaxy device to reach one million units sold in the shortest time -- within 21 days. Shares in Samsung rose more than two percent in Seoul on Tuesday.
The announcement comes a day after the stock market collapsed on a black Monday in Asia and Europe after China retaliated against steep US tariffs.
Experts warn the tariffs could also impact Samsung, as more than half of its smartphones are manufactured in Vietnam, which now faces a 46 percent duty from the US.
"Samsung's consensus-beating first quarter operating profit implies its popular product offerings, such as Galaxy smartphones, could weather a tough business environment, when combined with strong cost control capabilities," Bloomberg Intelligence analysts said.
