ReportWire

Tag: QUARTERLY REPORT

  • Samsung Set for Highest Q3 Profit in Three Years as AI Demand Lifts Chip Prices

    [ad_1]

    Samsung Electronics is expected to post its highest third-quarter profit since 2022, driven by higher memory chip prices supported by server demand as customers rebuild inventories, analysts’ estimates showed.

    The world’s biggest maker of memory chips is projected to report an operating profit of $7.11 billion for the July-September period, according to LSEG SmartEstimate from 31 analysts, which is weighted toward those who are more consistently accurate. This would be up 10 percent from a year earlier.

    Analysts attributed the recovery mainly to better conventional memory chip pricing, which would offset weaker sales volumes of high-bandwidth memory (HBM) chips as Samsung has yet to supply its latest HBM products to Nvidia.

    HBM chips, critical for artificial intelligence (AI) development, are designed to reduce power consumption and process large datasets by stacking chips vertically.

    Analysts said demand for memory chips, particularly from hyperscalers and AI-related investments for services such as ChatGPT, have put more workload on general servers, thus boosting conventional memory chip prices.

    Prices of some DRAM chips, widely used in servers, smartphones and PCs, jumped 171.8 percent in the third quarter from a year earlier, according to TrendForce data.

    While Samsung’s conventional memory business performed well, analysts said delays in supplying its latest 12-layer HBM3E chips to Nvidia have hurt its profit and share price.

    Rivals SK Hynix and Micron have gained more from AI-driven demand, while Samsung’s exposure to China, where advanced chip sales are restricted by the United States, has constrained its growth.

    Analysts said market sentiment toward Samsung’s shares and chip business, including both memory and contract chip manufacturing, is expected to improve as it secures supply deals with major customers such as OpenAI and Tesla.

    Samsung shares have risen more than 43% following its announcement of a chip supply deal with Tesla in July.

    During OpenAI CEO Sam Altman’s visit to South Korea earlier this month, Samsung, SK Hynix and OpenAI announced partnerships to supply advanced memory chips to the Stargate project.

    The AI chip deal between OpenAI and AMD, one of Samsung’s major HBM customers, would also benefit Samsung, said Ryu Young-ho, a senior analyst at NH Investment & Securities.

    Ryu added that Samsung’s $16.5 billion foundry deal with Tesla has lifted expectations that Samsung’s struggling contract chip manufacturing business could win more orders from major tech firms if the company delivers the project as planned.

    While recent AI-driven supply deals signal a positive outlook for Samsung, analysts cautioned that uncertainties remain, including potential U.S. tariffs on chips and China’s tightened export controls on rare earth materials used in advanced chips and manufacturing equipment.

    In September, Micron said it expects to sell out all of its HBM chips for calendar year 2026 in the coming months due to strong demand.

    Samsung will announce its estimates on revenue and operating profit on Tuesday, with full results due later this month.

    Reporting by Heekyong Yang; Editing by Jacqueline Wong

    [ad_2]

    Reuters

    Source link

  • Atlantic City’s nine casinos see earnings down by 15% in Q1 amid higher wages, ongoing inflation | Yogonet International

    Atlantic City’s nine casinos see earnings down by 15% in Q1 amid higher wages, ongoing inflation | Yogonet International

    [ad_1]

    Atlantic City casinos’ collective gross operating profit has fallen by almost 15% in the first quarter of 2023 when compared to the same period a year ago, according to figures released Monday by the New Jersey Division of Gaming Enforcement.

    The nine casinos collectively posted an operating profit of $135.4 million in the first three months of 2023, which is down from the more than $159 million in profits they posted in Q1, 2022. Gross operating profit reflects earnings before interest, taxes, depreciation, and other charges.

    James Plousis, Chairman of the New Jersey Casino Control Commission, told Associated Press that casinos are dealing with higher costs this year, including significantly higher wages they agreed to pay workers under a landmark contract reached last summer.

    “Compared to the first quarter last year, the casino hotels are employing more people and a progressive labor agreement was reached,” Plousis told the cited source. “These steps are emblematic of an industry that is preparing for growth and success.”

    For his part, Mark Giannantonio, president of Resorts Casino and of the Casino Association of New Jersey, also attributed the lower earnings to inflation.


    Mark Giannantonio

    As for results per casino, Bally’s went from a big first-quarter loss of $6.8 million last year to a meager profit of $88,000 in Q1 2023. The Ocean Casino Resort’s profit was up 27.6% to $23.6 million; while Harrah’s saw its profit increase by more than 21% to $19.2 million; and Caesars’ profit was up over 7% to $11.3 million.

    Meanwhile, Resorts went from a $527,000 profit in last year’s Q1 to a $284,000 loss this year. The Borgata’s profit was also down, over 50% to $22.8 million. For its part, Hard Rock’s profit was down 17.5% to $22.2 million; and Tropicana was down 15.3% to $16.7 million. Lastly, Golden Nugget had a profit of $4.8 million, down from a $5.6 million profit over the same period in 2022.

    Among internet-only entities, Resorts Digital was up nearly 6% to just under $8 million, while Caesars Interactive Entertainment NJ was down 13.2% to $6.8 million.

    The Golden Nugget had the lowest-cost average room rental rate in the first quarter, at $113 a night. Meanwhile, Ocean had the highest, at $212. The overall casino hotel occupancy rate for the first quarter was 65.2%, up 2.1% from a year earlier.

    The figures come amid ongoing concerns surrounding Atlantic City’s in-person gambling winnings. While overall gambling revenue increased by 9.5% year-on-year in April, hitting $462.7%, the figure also includes the share brought in by sports bets and iGaming, which must be shared with partners. When analyzed separately, winnings from on-premises physical casinos fell by 1.6% to $231.4 million.

    [ad_2]

    Source link