Thu, Feb 07, 2013 - Page 13 News List

HTC revenue falls again as brokerage houses cut targets

By Helen Ku  /  Staff reporter

Taiwanese smartphone vendor HTC Corp (宏達電) yesterday said its consolidated revenue fell for the second consecutive month to NT$15.54 billion (US$524.6 million) last month.

Compared with consolidated revenue of NT$21.57 billion in December last year and NT$16.62 billion in January last year, sales last month reflected a decline of 27.9 percent month-on-month and 6.5 percent year-on-year.

WEAK SALES

On Monday, the company forecast that sales would be flat or show a sequential decline to between NT$50 billion and NT$60 billion this quarter, from NT$60 billion last quarter.

HTC’s shares declined by the 7 percent daily limit to NT$266 on Tuesday after the company gave the downbeat outlook for the current quarter, but they bounced back and closed up 2.07 percent at NT$271.50 yesterday.

Fubon Securities Co (富邦證券) revised down its forecast for HTC’s earnings per share this quarter to NT$0.8 from NT$1.2 and cut its target price for the stock to NT$310 from NT$330.

However, that is still higher than the price targets of less than NT$300 of most overseas brokerages.

PRICE TARGET CUTS

Out of 14 overseas brokerages, Nomura Holdings gave the highest target price of NT$280, while JPMorgan Chase & Co reduced HTC’s target price to just NT$100.

Morgan Stanley cut its target price for HTC to NT$275 from NT$333, Deutsche Bank AG lowered its target price to NT$250 from NT$270, while UBS Securities reset its target to NT$155 from NT$166.

Macquarie Securities, which also adjusted its target down to NT$200 from NT$220, said HTC’s sales would fall further this quarter mainly because of weakening demand in the Chinese market, component shortages for the firm’s well-received Butterfly smartphone and the delayed launch of its new flagship model M7.

Shipments in the second quarter are likely to grow by between 25 percent and 30 percent after the M7 is launched next month, Macquarie said.

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