Samsung Electronics' second-quarter net profit fell 5% from a year ago on price declines for its mainstay computer memory chips, but expressed confidence a rebound in the market would bolster earnings, an Associated Press report said.
The Associated Press report said the company's shares surged 6.4% to $749 amid investor expectations for stronger business performance later in the year as well as on a news report that US investor Carl Icahn may be considering a bid for the company.
Samsung, the world's largest computer memory chip manufacturer, earned 1.42 trillion won ($1.55 billion) in the three months ended June 30, the company said in a statement. Sales rose 3.7% during the quarter from the same period last year, the Associated Press report said.
The profit result, the third straight quarterly decline, was better than expected.
The average estimate of nine analysts surveyed by Dow Jones Newswires forecast that Samsung would post a net profit of 1.33 trillion won ($1.45 billion), the report added.
Prices and supply conditions for memory chips are highly seasonal, with demand usually strongest in the final two quarters of the year when purchases of personal computers traditionally pick up, the report said.
Samsung manufactures both DRAM as well as NAND chips used in digital cameras, music players and mobile phones.Analysts concurred with Samsung's bullish outlook and said they expect improvements in all business sectors, the report said.