During HTC’s quarterly earning call, the company stated that it will no longer be providing earnings guidance for following quarters in an effort to avoid the “side effects.” For those who don’t know, most companies provide earnings guidance to give investors a vague idea of what the company plans to make the following quarter. While HTC has all the information it needs to project how much money it will spend and how much it will bring in form smartphone sales, the company has failed to meet its guidance numbers recently, resulting in significant selloff of its stocks once the actual earnings are announced.
By not providing earnings guidance, HTC hopes to bring a little more stability to its stock price while it still works to reduce its overhead expenses and find a product that can actually have a positive impact on its bottom line. HTC hasn’t indicated how long it plans to keep investors in the dark, but we have a feeling that it will resume issuing quarterly guidance if it actually sees evidence that its fortunes have turned around. HTC has stated that the HTC One A9 will likely result in an earnings increase over Q4 of 2014, but without any guidance from HTC, it’s impossible to know what that increase may be.
On HTC investor call after huge 3Q loss, company declines to give 4Q guidance, says will not give guidance anymore
— Eva Dou (@evadou) October 30, 2015