Sunday, February 5, 2023

Lenovo Profit Soars: Up 90% Year-Over-Year

Lenovo has reported its earnings for the fourth fiscal quarter, and they show dramatic growth. The China-based firm saw big increases in revenue and profits, despite a global slump in PC sales.

Bloomberg reported, “Lenovo Group Ltd. (992), the world’s second-biggest maker of personal computers, reported a 90 percent gain in fourth-quarter profit after increasing its market share and boosting smartphone sales. Net income climbed to $126.9 million in the three months ended March, from $66.8 million a year earlier, Lenovo said in a statement today. That beat the $108.1 million average of eight analysts’ estimates compiled by Bloomberg.”

Computerworld’s Michael Kan noted, “In Lenovo’s home market of China, the company had an operating margin of 4.9%, an increase of 8% year-over-year. The company also saw continued profitability in its mobile devices business, which makes up 9% of its overall sales. At the end of the quarter, Lenovo’s smartphone shipments were up 206% year-over-year.”

The Wall Street Journal’s Paul Mozur and Juro Osawa observed, “Lenovo’s solid results stand out in the global PC industry, which is struggling with weak demand as more consumers turn to tablet computers and smartphones. Global PC shipments in the first quarter fell 14% from a year earlier, according to research group IDC.”

CNET quoted Sanford C. Bernstein analyst Alberto Moel, who said, “Somebody over there is doing something right. The size of the beat is quite solid. They did better margins everywhere, with material expansion in PCs in Europe, Middle East, and Africa as well as North America.”

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