HTC profit beats estimates on demand for One M8 smartphone
Net income was NT$2.26 billion ($76 million) in the three months ended June, says the firm
Taipei: HTC Corp, Taiwan’s biggest smartphone maker, posted second-quarter profit that beat analyst estimates on demand for its marquee One M8 device.
Net income was NT$2.26 billion ($76 million) in the three months ended June, the Taoyuan, Taiwan-based company said in a statement on Thursday. That compares with the NT$2.06 billion average of 14 analyst estimates compiled by Bloomberg.
The HTC One M8, released in March as the company’s main product for the year, helped drive the largest monthly sales growth since 2011 in April. Earnings would return to profit for the June quarter with sales climbing throughout this year, chief financial officer Chang Chialin told investors in a 6 May conference call.
Sales for the quarter fell to NT$65.1 billion, according to revenue released by HTC on Thursday. That missed analyst estimates for NT$66.9 billion, and was at the bottom of HTC’s own forecast for NT$65 billion to NT$70 billion.
Operating income was NT$2.43 billion in the quarter, up from NT$1.05 billion a year earlier. The result beat the NT$2.17 billion average of analyst estimates.
HTC, founded by chairwoman Cher Wang in 1997, posted three consecutive operating losses, with its net income in the fourth quarter coming via profit from the sale of its stake in Beats Electronics LLC.
Beyond M8, a high-end thin, metallic handset released in March, HTC is also looking to its mid-end Desire series to sustain sales momentum throughout the year. Wearable devices and a tablet to be released later in the year may also help boost sales.
HTC shares added 0.4% to NT$137 at the close in Taipei on Thursday before the earnings were announced. The stock has lost 2.8% this year, lagging an 11% gain in Taiwan’s benchmark Taiex index. BLOOMBERG
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