Roaring Samsung Semiconductor Sales Fuel 78 Percent Year-Over-Year Profit Surge

Samsung's been in somewhat of a sales funk ever since the launch of its Galaxy S5. Consumers had grown bored with the recycled design of the Galaxy series, and though the premium overhaul of the Galaxy S6 and S6 Edge sparked renewed interest in the company's flagship phone line, manufacturing troubles prevented Samsung from selling as many devices as it could have. Despite it all, however, Samsung managed to increase its operating profit last quarter, much to the delight of investors.

Consolidated sales are expected to reach 51 trillion Korean won (around $44.37 billion in U.S. currency) for the third quarter of 2015, up from 47.4 trillion Korean won (~$44.2 billion) in the same quarter a year ago. Just as importantly, Samsung increased its operating profit during the same period, going from 4.1 trillion Korean won (~$3.56 billion) in the third quarter of last year to 7.3 trillion Korean won (~$6.3 billion) in the present quarter.


Peter Yu, an analyst at BNP Paribas SA in Seoul, said the "surprise results" indicate that the "blue days are finally over," adding that "analysts will now have to revise up their estimates," according to Bloomberg. "It's been a while since they've done that," Yu said.

Samsung's results also caught the attention of investors. Shares of Samsung jumped considerably following news of the company's earnings guidance, which pushed Samsung's market capitalization by $13 billion. In just a single day, Samsung's loss in market capitalization this year was cut by more than half.

Analysts believe that an uptick in semiconductor sales are the reason Samsung is seeing so much success lately. In addition to pumping out Exynos chips for its own brand smartphones, Samsung also supplies a portion of the custom A9 processors used in Apple's iPhone 6s and iPhone 6s Plus handsets.