To combat the “side effects” of missing its own quarterly guidance, HTC will no longer be providing quarterly earnings guidance. HTC has always issues earnings guidance on its quarterly earnings calls, giving investors an idea of how much money the company is planning to make or lose over the next three months. Historically, HTC has beat its guidance numbers, resulting in an increase in the company’s stock price. But HTC hasn’t been able to nail down a good number of the last few quarterly, resulting in earnings that are lower than HTC’s issued guidance, followed by a selloff of HTC stock by investors.
We are not sure why HTC’s accountants have had a hard time with the guidance calculations recently, but there’s a good chance that the internal restructuring at HTC is causing a few hiccups, especially if reorganization deadlines are not met.
Fortunately, HTC has stated that the HTC One A9 will have a positive impact on the company’s Q4 earnings, but without a guidance number from HTC for the fourth quarter, it’s impossible to know if HTC is projecting a a minimal or substantial increase over Q4, 2014.
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
Good move. With the reorganization of the Asia/Europe divisions, who can guess what will happen. Bottom line here is that in financial market, no news always beats bad news.