HTC quarterly sales beat estimates

TAIPEI: HTC, Asia's second-largest smartphone manufacturer, posted sales that beat analysts' estimates for a third quarter and said growth will continue as demand in the US and Asia remain strong. Shares rose in Taipei trading. Second-quarter revenue was NT$124.4 billion, or $4.3 billion, and shipments met the company's 11 million-unit target, Winston Yung, chief financial officer of the Taiwan-based company, said by phone on Monday. Sales more than doubled from a year earlier, and surpassed the NT$118.9-billion average of 20 analysts' estimates compiled by Bloomberg.

Strong demand in the US and Asia last quarter offset a slowdown in Europe, Yung said. HTC released its Sensation handset last month with a wide viewing angle and high-definition video camera as it seeks to lure consumers away from Apple's iPhone and Samsung Electronics' Galaxy handsets.

"If you look at the overall number, it's driven by the US, but if you look at the growth rate, the growth rate of Asia has been particularly high," said Yung. "We are very confident. I think we have launched a few products which will drive momentum all over the world and have high expectations for Sensation."

Second-quarter earnings will be announced July 6, said Yung. He declined to give sales or shipments forecasts.

HTC added 4.5% to NT$1,055 at the 1:30 pm close of trade in Taipei on Monday, the highest level in a week. The stock has climbed 17% this year and is down from a record-high close of NT$1,300 on April 28.

The shares lost 21% in June, the largest monthly drop in almost two years, as analysts including Macquarie Group's Daniel Chang cut their recommendations, citing slowing sales growth amid strong competition from rivals. Twenty-six of 36 analysts surveyed by Bloomberg advise investors to 'buy' the stock, nine say 'hold' and one has a 'sell' rating.