HTC Corp projected on Friday a further revenue increase in 2015 after the Taiwanese smartphone maker posted its first quarter of revenue growth in more than three years.
For the three months ending March 31 HTC projected revenue to range between 41.5 billion New Taiwan dollars and NT$45.0 billion, with the middle of the projection up around 30% compared to the first quarter of 2014.
The company also sees an improvement in operating profit and projected the figure to stand between NT$92.5 million and NT$500.0 million versus an operating loss of NT$2.05 billion. Per share earnings are expected to be the range of NT$0.08 to NT$0.47.
After facing severe competition from high-end smartphone manufacturers like Apple and Samsung, HTC switched up its strategy from relying on one or two products to drive revenue to a group of lower cost smartphones.
HTC bet on its Desire series to revive sales after its flagship One (M8), announced in March and priced around $600, failed to so. Over the past year HTC has launched at least 10 new models of the Desire smartphones, ranging from $100 and $450.
Additionally, HTC introduced two new Desire models at the Consumer Electronics Show in Last Vegas in early January.
HTC reported a revenue of NT$47.9 billion for the last quarter of 2014, compared to NT$42.9 billion in the same period of the previous year, marking its first revenue growth since Q3 of 2011. Operating profit stood at NT$180 million, well above the NT$30.4 million loss analysts had projected.
Net income for the quarter came in at NT$470 million, or NT$0.57 per share, above analysts expectation of NT$212 million. HTC said revenue in January was NT$12.3 billion.
In line with its new strategy HTCs new products are focused on emerging markets, including China and India, which has also helped the company ease pressure from the iPhone and the Galaxy.
“HTC finished the year with a third consecutive quarter of profitability, and is well-positioned to build on that solid platform in the year ahead by ensuring our portfolio is highly targeted,“ said Chief Executive Peter Chou.
HTC Corp gained 0.96% on Friday and closed at NT$158.50, marking a one-year increase of 22.39%. The company is valued at NT$131.09 billion.
According to the Financial Times, the 19 analysts offering 12-month price targets for HTC have a median target of NT$130.00, with a high estimate of NT$200.00 and a low estimate of NT$90.00. The median estimate represents a 17.98% decrease from the last closing price price.
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