Samsung said it expects sales for the third quarter will rise about 6% to 66 trillion won ($57 billion). Analysts polled by Refinitiv had predicted 63 trillion won in sales ($54.5 billion).
Shares in Samsung were last trading down 0.2% in Seoul.
Samsung, which did not elaborate on earnings, will report full results for the third quarter at the end of this month.
Earlier this year, the company was displaced by Huawei as the world’s top smartphone seller as the coronavirus pandemic weighed on the global economy. Most of Huawei’s sales are in China, which has recovered faster than other countries.
For Samsung, a sharp rise in smartphone sales will drive a rebound in earnings for the third quarter and the boost will likely carry over to next year, SK Kim, an analyst at brokerage firm Daiwa, said in a research note last week.
The sales bump is driven by US restrictions on Huawei, a rise in demand for 5G phones and “improved cost structure with a rapid shift to online marketing,” said Kim. The pandemic has led to the shutdown of retail stores around the world and lower marketing costs.
As millions of people around the world continue to work, play games and watch movies from home, Samsung had been enjoying a boost to its memory chip business thanks to demand from data centers. But Kim said he expects Samsung will see weaker earnings from the unit going forward, “due to memory price drop from inventory adjustment.”
“Samsung is poised to see shipments of semiconductors and display panels to captive customers grow, fueled by increased sales,” Lee Su-bin, an analyst with Daishin Securities, wrote in a note last month.
“It stands to benefit more significantly than any of its peers from the ongoing ban on Huawei,” he added.