Samsung Electronics posted $7.57 billion in operating profit in the three months to June, up 17.4 percent from a year earlier, thanks mostly to its flagship handset Galaxy S7.

In its earnings guidance, the company said its sales were  up 3.01 percent from a year ago. The electronics giant will unveil a breakdown of its divisional performances later this month.

Its operating profit is the largest in about two years and beats what Wall Street had expected.

This is the first time that Samsung's quarterly operating profit topped $7 billion since the first quarter of 2014.

"The strong popularity of the Galaxy 7 models and brisk sales of flash memory chips were key factors behind the stronger-than-expected second quarter results," a company official said.

The combined shipment of the Galaxy S7 is estimated at some 16 million in the quarter.

Samsung hopes to continue to maintain the momentum by launching a new Galaxy Note series early next month.

Samsung Electronics' chip division, led by 3D NAND flash memory chips, also contributed to the strong quarterly growth, analysts said. The chips, mainly used by corporate clients, have drastically improved memory production efficiency, compared to existing ones.

Analysts are upbeat about the outlook for the third quarter on increased shipments of chips and the launch the Galaxy Note 7.

The company's IT and mobile communications unit may face tougher threats from Chinese handset makers.  Apple iis expected to release an iPhone 7 in the third quarter, while predictions are that it will be a disappointment, the numbers might make a dent in Samsungs' bottom line.