Samsung expects record $12.8-billion Q3 operating profit

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The technology giant estimated operating profit for the third-quarter nearly tripled to 14.50 trillion Korean won or $12.8 billion from 5.20 trillion won a year ago.

That estimate beat a Reuters average forecast of 14.3 trillion Korean won in operating profits. The guidance, released today ahead of full earnings later this month, did not provide specific divisional results.

Revenue likely rose 29.7 percent from a year earlier to 62 trillion won, Samsung said in a regulatory filing.

Brisk sales of the latest Galaxy Note 8 smartphone, launched in mid-September, lifted mobile profit as Samsung recovered from last year's costly withdrawal of the fire-prone Note 7 device, analysts said.

The rising sales of its flagship Galaxy S8 and Galaxy Note 8 smartphones were also believed to have bolstered the profitability of the mobile division, analysts said.

Samsung appears to have bounced back from its Galaxy Note 7 disaster - in a big way.

Shares in SK Hynix Inc, the world's second-largest memory chip maker after Samsung Electronics, also jumped as much as 4.3 percent, their biggest intraday percentage gain since August 14.

"The release of new models, including the iPhone X by rival Apple Inc., could weigh down on the mobile business, but it will at the same time help Samsung's parts business", said Doh Hyun-woo, analyst at Mirae Asset Daewoo Securities a report.

The consumer electronics division will also benefit from strong seasonal demand, he added. Analysts have tipped its chip division to propel the firm to record overall profit.

The rising presence of Chinese rivals coupled with USA trade protectionism headed by President Donald Trump are also major hurdles, they added.