Taipei, April 6 (CNA) Global smartphone designer HTC on Tuesdayannounced first quarter revenues of NT$37.7 billion (US$1.2 billion),up 19.3 percent year-on-year and higher than its forecast of NT$32billion to NT$34 billion.
The company reported Q1 net profit of NT$5.03 billion, withearnings per share (EPS) of NT$6.42.
However, its Q1 revenues and net profits were down 8 percent and9.2 percent respectively from Q4 last year.
The company's revenues rose sharply to NT$16.4 billion in March,an increase of about 60 percent from February and 32.4 percentcompared to the same month last year.
According to HTC, the better-than-expected figures prove that ithas adopted successful branding strategies.
As most institutional investors had expected the company's EPSfor Q1 to be around NT$5 to NT$5.5, its shares are likely to riseWednesday, analysts said.
HTC shares closed at NT$381 Tuesday, NT$6.0, or 1.6 percent higherthan the closing figure Monday.
Most foreign investors are optimistic about HTC's outlook.
Morgan Stanley recently raised its target price on HTC fromNT$423 to NT$450. Macquarie Securities reiterated its "outperform"rating for HTC with a target price of NT$420, while Goldman Sachsmaintained its "buy" rating for the company.
BNP Paribas Securities said that it has raised its forecast forthe sale of HTC mobile phones this year by 9 percent -- from 14.5million to 15.8 million units. It has also raised its forecast fornext year to 21.9 million units, up 22 percent from its previousforecast of 17.9 million.
(By Tien Yu-pin and Fanny Liu)