China’s Lenovo extends revenue growth streak, beats expectations

By Thomson Reuters May 22, 2024 | 11:29 PM

By Josh Ye

HONG KONG (Reuters) -China’s Lenovo Group reported a 9% rise in fourth-quarter revenue to $13.8 billion on Thursday, as the world’s largest maker of personal computers (PCs) exits a demand slump following the aftermath of the COVID-19 pandemic.

Revenue for the January-March quarter beat an average estimate of $13 billion drawn from eight analysts, according to LSEG data.

This marks a second consecutive quarter of revenue growth for Lenovo after it suffered five straight quarters of revenue declines amid the post-COVID slowdown.

Last month, research firm IDC said the global PC market has finally returned to growth during the first quarter this year after suffering nearly two years of decline.

PC shipments grew 1.5% year over year to 59.8 million during the quarter, with Lenovo firmly holding on to the No.1 title with a 23% market share, according to IDC.

But overall, Lenovo’s revenue for the year ended March 31 fell 8% to 61.9 billion, beating analysts’ expectations of $56.19 billion.

Lenovo’s net profit for the January-March quarter rose 118% to $248 million, beating analysts’ estimates of $162 million.

(Reporting by Josh Ye; Editing by Clarence Fernandez and Janane Venkatraman)