Log in
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 

MarketScreener Homepage  >  News  >  Companies

News : Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors

Lenovo profit beats expectations, helped by remote working trend

11/03/2020 | 03:23am EST
Illustration photo of a Lenovo logo

HONG KONG (Reuters) - China's Lenovo Group, the world's biggest PC maker, posted a better-than-expected quarterly profit on Tuesday and said it is continuing to benefit from "new normal" remote working after COVID-19.

The Chinese giant said it set new records for group revenue, pre-tax income and net income, and all three key business groups delivered year-on-year growth for the first time in six quarters.

"Last quarter was what I would call a perfect quarter for Lenovo," Chairman Yang Yuanqing told Reuters in a post-results interview.

"I hope the current quarter could be even better." he said.

Lenovo reported a 53% jump in net profit for the quarter ended September to $310 million, beating average analyst estimate of $224 million, according to Refinitiv data.

Revenue increased 7% to $14.5 billion.

With the pandemic forcing companies worldwide to seek work-from-home options and people preferring to stay indoors, the company expects to benefit from increased sales of PCs and tablets.

"Our gaming PCs and our thin-and-light PCs actually grow margin faster than other products," said Yang.

According to research firm Gartner, worldwide shipments of personal computers rose 3.6% in the July-September quarter, due to home entertainment and distance learning needs, along with the strongest growth the U.S. PC market has seen in 10 years.

Yang predicted a further 5% to 10% industry-wide increase of total addressable market for PCs next year.

Lenovo strengthened its lead in PCs with 25.7% of the market, ahead of HP Inc and Dell Technologies which had 21.6% and 15.2% share, respectively.

Yang said a component supply shortage, particularly for display and integrated circuit, is keeping the company from meeting 100% customer demand.

"The issue is not demand, it's supply. If we can fill enough supply, we can sell more products," he said.

(Reporting by Pei Li; Editing by Muralikumar Anantharaman and Krishna Chandra Eluri)

By Pei Li

© Reuters 2020
Stocks mentioned in the article
ChangeLast1st jan.
DELL TECHNOLOGIES INC. 1.38% 74.26 Delayed Quote.1.32%
GOLDEN EAGLE RETAIL GROUP LIMITED -0.14% 7 End-of-day quote.-0.57%
HP INC. -1.76% 25.17 Delayed Quote.2.36%
LENOVO GROUP LIMITED 4.32% 9.18 End-of-day quote.25.41%
Latest news "Companies"
07:51aFMC CORP : Results of Operations and Financial Condition (form 8-K)
07:51aBOEING : 737 MAX to Receive EU Flight Clearance Next Week
07:51aConcrete Pumping Holdings Announces Offering of Senior Secured Second Lien Notes
07:51aEFFICIENCY, CONFIGURABILITY AND SECURITY : New Terminal Emulator From Rocket Software Brings Innovation to Users of Mission-Critical Systems
07:50aKilli Partners with Retargetly to Deliver Verified and Consented Data in International Markets
07:48aHSBC : to axe 82 branches in UK, cut services in others
07:48aPARAGON BANKING : Financial Adviser Confidence Tracker (FACT) Index – Q4 2020
07:48aEDP ENERGIAS DE PORTUGAL S A : Reached an agreement to acquire 85% of a distributed solar platform in the u.s.
07:47aADT INC. : Results of Operations and Financial Condition, Regulation FD Disclosure, Financial Statements and Exhibits (form 8-K)
07:46aEuropean countries struggle to make most of Pfizer COVID-19 vaccine doses
Latest news "Companies"