Lenovo’s quarterly profit falls less than expected
Beijing — Lenovo’s quarterly profit fell less than expected after the global PC 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 $107m in the three months ended March. This compares with the $97.9m average of analysts’ estimates compiled by Bloomberg. Revenue increased 5% to $9.6bn compared with the $9.65bn projected.
Lenovo narrowly lost its top position in global PCs to HP 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 stabilised.
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 stabilisation of operating performance of the mobile business group should build market confidence in Lenovo’s capability to 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.
Shares of Lenovo were up 1% at the midday break in Hong Kong before the results were announced.