April 5, 2012 / 11:39 PM / 5 years ago

Instant View: Samsung estimates record first quarter profit

SEOUL (Reuters) - Samsung Electronics, the world’s top technology firm by revenue, estimated operating profit nearly doubled in January-March from a year ago, boosted by sales of its flagship Galaxy smartphones and its Note mini-tablet and phone.

Samsung, which will release its full quarterly results on April 27, estimated its January-March operating profit at a record 5.8 trillion won ($5.15 billion) versus a consensus forecast of 5.0 trillion won from analysts surveyed by Thomson Reuters I/B/E/S. It estimated sales at 45 trillion won.

Following are reactions from analysts and fund managers:

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CHOI DO-YEON, ANALYST, LIG INVESTMENT & SECURITIES

“There was a big surprise in profit, while revenue was in line, which suggests a stronger than expected profit margin from the handset division thanks to robust sales of high-end models like the Galaxy S and Note.”

“Handset margins are estimated to have topped 20 percent and profits from the division also topped 4 trillion won. This is really a blowout result and there could be more surprises in the coming quarters as other businesses such as chips will show recovery.”

“However handset margins could come under pressure in the second quarter due to increased marketing spend related to the summer Olympics and new product launches.”

Reporting by Miyoung Kim; Editing by Jonathan Hopfner

Our Standards:The Thomson Reuters Trust Principles.
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