HTC Fourth-Quarter Profit Beats Estimates on Android Mobile Phone Sales

Bloomberg | January 6, 2011 | Tim Culpan

HTC Corp., the world’s largest maker of handsets using Google Inc. Android and Microsoft Corp. Windows operating systems, more than doubled profit after new models spurred sales to a record.
Fourth-quarter net income climbed to NT$14.6 billion ($500 million) from NT$5.5 billion a year earlier, the Taoyuan, Taiwan-based company said in a statement today. The average of 19 analyst estimates compiled by Bloomberg was for profit of NT$13.4 billion.
Android’s growing market share and a high-definition version of HTC’s Desire phone boosted sales while maintaining prices in the past three months. The debut last quarter of Windows Phone 7 models and the release of fourth-generation handsets may help sustain sales growth, according to Steven Tseng, an analyst at RBS Asia Ltd.
“Flagship models like the Desire HD are driving sales,” said Taipei-based Tseng, who recommends investors buy the HTC stock. “The average selling price is strong because demand is there for high-end models.”
Fourth-Quarter Sales
HTC’s fourth-quarter consolidated sales more than doubled to NT$104 billion, from NT$41 billion a year earlier, it said. The average of 14 analyst estimates compiled by Bloomberg was for consolidated revenue of NT$101 billion. HTC forecast a record NT$100 billion in consolidated sales for the period.
The stock added 1.2 percent to NT$907 at the 1:30 p.m. close of trade in Taipei before the earnings announcement. The company’s market value has more than doubled in the past 12 months, exceeding $25 billion, making it Taiwan’s fourth-largest listed company.
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