Lenovo's fiscal quarter net profit beats analysts' forecast

Lenovo Group Ltd posted a profit turnaround in its fiscal quarter ended in June amid a robust double-digit growth in revenue as computer sales boomed, China’s No. 1 PC maker said yesterday.

Hong Kong-listed Lenovo's net profit totaled US$77 million in the quarter, a reversal from its loss of US$72 million a year ago. The result beat analysts’ prediction of US$59 million.

Its revenue jumped 19 percent year on year to US$11.9 billion for a second consecutive double-digit quarterly growth.

Lenovo has “passed the turning point” and entered a phase of “acceleration”, Yang Yuanqing, the company's chairman and CEO, said in a statement yesterday.

The turnaround boosted Lenovo’s shares by 3.37 percent today, compared with a 0.82 percent drop in the key Hang Send Index.

Globally, PC sales are set to rebound 1 percent in 2018, according to researchers Gartner and IDC.

Lenovo also has growing businesses covering data center, supercomputing and investment. 

Lenovo’s Capital and Incubator Group will continue to invest in next-generation IT capabilities in artificial intelligence, Internet of Things, big data and virtual reality/augmented reality in manufacturing, health care and transport, the company said.