China's Lenovo posts Q3 revenue growth, beats analyst estimates
By Josh Ye
HONG KONG (Reuters) -China's Lenovo Group (OTC:LNVGY), the world's largest maker of personal computers, on Thursday reported October-December revenue of $15.72 billion, up 3% from the same period a year earlier.
The result compared with the $15.25 billion average of eight analyst estimates compiled by LSEG.
Revenue started contracting in 2022 at the end of a boom in demand for PCs and other electronic products brought about by COVID-19. Lenovo then recorded five quarters of revenue decline, with analysts forecasting growth in the sixth.
Net income attributable to shareholders rose 23% to $337 million in October-December, versus analysts' $309 million estimate.
Researcher Gartner (NYSE:IT) in January reported Lenovo's third-quarter PC shipments grew 3.2% versus the same period a year earlier. Industry-wide PC shipments likewise grew, by 0.3%, reflecting market recovery after an almost two-year decline.
Lenovo controlled 25.6% of the global PC market during the period, Gartner data showed, with HP (NYSE:HPQ), Dell (NYSE:DELL) and Apple (NASDAQ:AAPL) in second, third and fourth place.
The PC maker is working to improve profitability by expanding non-PC businesses, the most notable of which sells information technology services to enterprises. Revenue for its service business unit rose 10% to $2 billion.
Lenovo's share price was down 0.58% in morning trade, versus a 0.15% increase in the benchmark Hang Seng Index.
Investors have been buying Lenovo shares over the past 12 months in part due to potential demand for «AI PCs», or personal computers optimised to run artificial intelligence software. In that time, Lenovo stock price has gained more than 25%.
On Thursday, Lenovo said AI PCs — including those capable of
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