Samsung Electronics the huge South Korea based conglomerate announced on Thursday that it is expecting second quarter operating profit to increase by 17% compared to the same quarter last year. Sales were expected to rise by 3%.
The operating profit for the company during the second quarter will likely be its best in over two years and exceed the 8 trillion won mark that was last reached during the 2014 first quarter, when it posted 8.5 trillion won in operating profit.
The financial results will likely reflect the continued demand at a high level for the Galaxy 7, Samsung’s latest smartphone. The forecast for operating profit is above expectations of analysts on Wall Street. The company will report its official financial results late in July for its second quarter of 2016.
According to a recent Samsung regulatory filing, it is estimating profit during its second quarter to be approximately 8.1 trillion won equal to $7 billion, which would be above the 7.8 trillion won analysts were expecting.
The forecast would equal an increase of 17.4% from the same quarter one year ago when its operating profit was 6.9 trillion won. It would also mark a sequential increase of 20.9% from its operating profit of the first quarter that was just over 6.7 trillion won.
Samsung is projecting sales during the second quarter will have an increase of 3.1% when reported later this month. The total amount of sales is expected to reach 50 trillion won compared to sales from last year during the same quarter of 48.5 trillion won.
Sales are expected to increase just slightly from sales of the previous quarter that were just over 49.8 trillion won.
There were no breakdowns of sale figures or earnings estimates for the different business divisions within the company.
This past April, Samsung posted a 12% increase year over year in its operating profit for its first quarter of 2016 compared to the same period one year ago.
Those figures reflected the strong sales from its flagship smartphones the Galaxy S7 and the S7 Edge.
Samsung shares were up 1.83% in trading in South Korea on Thursday following the release of the company’s estimates for its second quarter sales and earnings.
The smartphone industry has leveled off somewhat during 2016, but Samsung has been able to increase its sales in that sector of the company.