HTC Loses Halo After Weak Earnings

HTC Corp., the second-largest smartphone manufacturer in Asia, reported its first reduction in quarterly profit in two years thanks to competition from Apple Inc. (NASDAQ:AAPL) and Samsung Electronics Co. that weakened the market for its handsets.

Q4 net income went down 26 percent to NT$11 billion ($364 million) from NT$14.8 billion one year prior, HTC (based in Taoyuan, Taiwan) announced in a statement Friday. According to a compilation of 11 analyst estimates by Bloomberg in the past month, an average profit of NT$11.6 billion was expected.

Shipments and sales predictions by analysts are not positive, expected to drop more this quarter following HTC’s reduction in its outlook for revenue in the last three months of 2011. HTC handsets, such as the Sensation, Wildfire and Rhyme, slumped in sales in the fourth quarter, losing out to customer demand for Apple’s iPhone and Samsung’s Galaxy options. Plus, the weaker worldwide economy lessened demand overall.

Here’s how HTC’s mobil handset competitors are reacting to the news today:

Apple Inc. (NASDAQ:AAPL): AAPL shares recently traded at $420.76, up $2.73, or 0.65%. They have traded in a 52-week range of $310.50 to $426.70. Volume today was 6,817,741 shares versus a 3-month average volume of 15,054,700 shares. The company’s trailing P/E is 15.20, while trailing earnings are $27.68 per share.

Research In Motion Limited (NASDAQ:RIMM): RIMM shares recently traded at $15.35, up $0.3, or 1.99%. They have traded in a 52-week range of $12.45 to $70.54. Volume today was 8,994,547 shares versus a 3-month average volume of 21,986,200 shares. The company’s trailing P/E is 3.61, while trailing earnings are $4.25 per share.

Nokia Corporation (NYSE:NOK): NOK shares recently traded at $5.28, down $0.13, or 2.4%. They have traded in a 52-week range of $4.46 to $11.75. Volume today was 28,006,627 shares versus a 3-month average volume of 29,248,600 shares. The company’s trailing P/E is 22.66, while trailing earnings are $0.23 per share.

Google Inc. (NASDAQ:GOOG): GOOG shares recently traded at $652.58, down $6.43, or 0.98%. They have traded in a 52-week range of $473.02 to $670.25. Volume today was 1,596,589 shares versus a 3-month average volume of 3,003,490 shares. The company’s trailing P/E is 22.24, while trailing earnings are $29.34 per share.

To contact the reporter on this story: Brooke Edge at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com