Samsung Electronics: Q2 Guidance Says Better-Than-Expected Memory Prices to Drive Strong Results

Samsung Electronics forecast for June-quarter sales of KRW 74 trillion, up 18.8% year over year, and operating income of KRW 10.4 trillion or an operating margin of 14.1%, up from 9.2% in the March quarter and posting the highest operating margin in seven quarters. While the preliminary operating income figure exceeded our forecast of KRW 8.9 trillion or 12.5% operating margin, which had assumed 18% sequential ASP growth for both DRAM and NAND, it was not unexpected. Micron had reported 20% sequential ASP growth for both DRAM and NAND in the May-quarter earnings call. (Samsung will release full results including segment breakdowns and hold a conference call on July 31.)