HTC jumps on record sales but overhang seen remaining
TAIPEI (Reuters) - Shares in the world's No.5 handset maker HTC jumped on Monday after it posted record monthly sales in June, clearing some of the worries that led to a correction starting early last month.
HTC was up 4 percent by 0250 GMT, outperforming the broader market. The Taiwanese smartphone maker, which has dropped 19 percent since June 7, was also the top stock in terms of turnover.
"Part of HTC's correction last month was due to market rumors that its June sales might be down or flat month-on-month, so the result yesterday helped clear up some of the rumors," said Yuanta Securities analyst Bonnie Chang.
But Chang did not expect a significant rebound for HTC, saying longer term pessimism would remain an overhang on its second-half sales unless the company provided street-beating guidance later on.
HTC said on Sunday its consolidated sales for June were up 87.8 percent from the same month a year earlier. Growth, however, slowed from May's 116 percent.
The sales announcement came out four days earlier than scheduled, which analysts said could have been an attempt on the company to relieve the pressure on its shares.
Citi analyst Kevin Chang also said in a research report that HTC's robust June sales could serve as a good near-term share price catalyst.
He expected HTC would ship around 50 million smartphones this year and that its earnings per share would reach close to T$90.
(Reporting by Clare Jim; Editing by Jonathan Hopfner)