New Smartphone Helps HTC Beat Profit Estimates

One M8 Phone Helped Drive the Largest Monthly Sales Growth Since 2011

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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 $76 million in the three months ended June, the company said in a statement today. That compares with the $69 million 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 May 6 conference call.

Sales for the quarter fell to $2.1 billion, according to revenue released by HTC today. That missed analyst estimates for $2.3 billion, and was at the bottom of HTC's own forecast for $2.1 billion to $2.3 billion.

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.

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.

--Bloomberg News

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