South Korea’s tech giant Samsung Electronics Co. is expected to post nearly 6 trillion won ($5.2 billion) in operating income in the first quarter ending March of this year, beating the market consensus thanks to better-than-expected sales of its new Galaxy S7 smartphones and solid earnings from semiconductors and displays.

“The company’s operating profit in the (first) quarter is estimated between 5.8 trillion won and 5.9 trillion won,” said an unnamed industry official with knowledge of the matter on Tuesday, citing the company’s data. “Earnings are expected to be much better than expected,” said the source, adding that the new Galaxy S7 smartphone sales are estimated to be higher than expected, helping boost the company’s overall profits. Samsung Electronics is slated to report its earnings guidance on Apr. 7.

According to data compiled by FnGuide, a Seoul-based fund-rating and research firm, the market consensus for the electronics company’s first-quarter operating income is estimated at 5.18 trillion won. The highest estimate was 5.58 trillion won.

Samsung Electronics’ new Galaxy S7 smartphones have been received well across the world since its launch, and the pre-orders of the Galaxy S7 series are 1.5 times more than those of its previous model Galaxy S6 series. Profits from its semiconductor and liquid crystal display (LCD) panel businesses also appeared to be solid despite diminishing demand and falling prices.

In particular, organic light-emitting diode (OLED) panels sold well, and the system LSI chip business is expected to make a turnaround in sales. Samsung Electronics’ Device Solution division is forecast to record about 2.5 trillion won in operating income, according to market analysts. Orders of the electronics maker’s new SUHD TV series are on the rise after they have gained positive feedback from the United States and Europe.

By Song Sung-hoon and Lee Seung-hoon

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]