Samsung Electronics Q4 profit jumps on server chip demand, foundry margins

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Samsung estimates its fourth-quarter profit at $11.5 billion, a more than 50% rise on-year, driven by continued strong demand for server memory chips

said on Friday its fourth-quarter operating profit likely jumped 52% on-year to its highest for the quarter in four years, helped by solid demand for server memory chips and higher margins in chip contract manufacturing.

The result missed a Refinitiv SmartEstimate of 15.2 trillion won, which analysts attributed to items such as employees' bonuses, marketing costs for its mobile business, and ramp-up costs for new display panels being included in the quarter."It looks like a shock because it came out less than the consensus, but I don't think it's as bad as it looks.

Samsung's logic chip business, which includes chip contract manufacturing that competes with Taiwan Semiconductor Manufacturing Co , is also expected to post a jump in operating profit to above 1 trillion won in the December quarter due to more deliveries and higher prices, Hanwha Investment & Securities analyst Lee Soon-hak said.

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