HTC Stocks hit a new low as the company cuts revenue projections for Q2
If you’re not aware, HTC is in trouble. earlier today, HTC announced that it is revising its revenue projections for the second quarter of 2015 from NT$46-NT$51 billion to NT$33-NT$36 billion with a possible net loss ranging from NT$7.95-NT$9.05 billion ($257-$291 million USD). To put things into perspective, the new revenue projections are roughly half of what HTC managed to pull in during the second quarter of 2014 and the projected losses would completely offset HTC’s earnings for the past four quarters.
HTC stock has been on a downward spiral during the first half of 2015, but things have gotten out of control this week as the company’s stock price hit new lows. The first low was reached on Wednesday when the stock price hit NT$93. After a 1.8% increase on Thursday, HTC’s stock price dropped to NT$92.80 – the lowest in the company’s history. The new revenue projection clearly shows that HTC needs to do something dramatic to stop the bleeding. Unfortunately, it takes 12-18 months to develop new hardware and even longer to make structural changes to a company as large as HTC.
What do you think HTC need to do to turn the company around?