HTC Missed Both Market and Internal Expectations

Shares of Taiwanese smartphone maker HTC were off by about 5 percent this morning when the company reported fourth quarter results that not only missed market expectations, but also painted a gloomy picture of the current quarter.

Revenues for the December quarter were down 2.5 percent to $101.4 billion and EPS was reported at $13.06 whereas analysts had expected $108.7 billion and $14.42 respectively. The results don’t even match the company’s revised forecast for the quarter issued in November 2011. (All figures are in New Taiwan dollars.)

The outlook for the current quarter is also off the consensus estimates – revenue is forecast between $65 billion and $70 billion against the consensus of $87.8 billion.

According to CEO Peter Chou, “While short term performance may not meet the results as expected, we have gained further experience and advancement in the areas of brand management and product innovation. These fundamental strengths and the groundwork we have laid will take us into 2012 with a renewed focus and determination.”