Lenovo profit falls less than projected as PC market stabilizes
Lenovo Group Ltd.’s quarterly profit fell less than expected after the global personal computer market eked out growth for the first time since 2012
Beijing: Lenovo Group Ltd.’s quarterly profit fell less than expected after the global personal computer market eked out growth for the first time since 2012.
The world’s second-largest PC maker reported a 41% slide in net income to $107 million in the three months ended March. That compares with the $97.9 million average of analysts’ estimates compiled by Bloomberg. Revenue increased 5% to $9.6 billion, compared with the $9.65 billion projected.
Lenovo narrowly lost its top position in global PCs to HP Inc. in the quarter but managed to increase market share as industry shipments grew 0.6%, the first time they’ve risen since early 2012 according to IDC. Lenovo’s biggest rival posted better-than-expected revenue growth as the market stabilized.
Overall demand however remains depressed and Lenovo needs to tap new sources of growth or turn around an under-performing smartphone division. It’s re-enlisted the executive who steered the acquisition of Motorola to run its Chinese PC arm, shaking up its senior ranks to breathe new life into a stagnating business.
“Any sign of stabilization of operating performance of mobile business group should build market confidence in Lenovo’s capability to achieve a break-even in the second half of fiscal year 2018,” Mark Po, a China Galaxy International analyst, wrote in a memo ahead of the earnings release. Bloomberg