Samsung Electronics’ third-quarter earnings are in the limelight amid emerging signs of a recovery in demand for memory chips, according to industry sources Thursday.

The South Korean tech giant is scheduled to announce its preliminary earnings guidance next week. Market analysts forecast it has posted an operating profit of over 7 trillion won ($5.8 billion) in the July-September period.

Shinhan Financial Investment predicted in a report that the tech giant will post 60.64 trillion won in sales with an operating profit of 7.04 trillion won in the third quarter.

The sales estimate is up 8 percent compared to the previous quarter while the operating profit will increase 6.7 percent on-quarter. 

However, the operating profit estimate of around 7 trillion won is down 60 percent on-year.

The company’s quarterly earnings are being viewed by analysts as a slight recovery, considering Samsung’s disappointing performance in the first half of the year.

The company posted around 6 trillion won in operating profit in the first two quarters this year.

“Backed by the recent recovery of the semiconductor market, expectations about an earnings surprise are on the rise,” said Kim Yong-koo, an analyst at Hana Financial Investment. “The third quarter is likely to be a turning point.”

According to the report by Shinhan, Samsung’s semiconductor division is forecast to posted 3.59 trillion won in operating profit, while the smartphone division is expected to report 2.04 trillion won.

The chipmaking unit’s profit is assumed to have jumped 5.5 percent, due to increased shipments of. DRAM and NAND memory chips, which are expected to have expanded 26 percent and 11 percent, respectively.

“Supply uncertainties due to the Japan’s export restrictions on key chip materials could further affect the pace of restocking (to further cut inventory levels),” the report said. “Global factors that constrain chip supplies have secured downward rigidity, while demand is likely to improve.”

By Song Su-hyun (song@heraldcorp.com)