PC maker Lenovo returns to Q3 profit, beating estimates

Lenovo said revenue for its PC and Smart Device Business rose 12 per cent in the three months period.
Lenovo said revenue for its PC and Smart Device Business rose 12 per cent in the three months period.PHOTO: REUTERS

HONG KONG (REUTERS) - Lenovo Group Ltd said on Thursday (Feb 21) it swung back to a net profit in the December quarter, beating market expectations, due to a strong performance across its major business groups.

Profit for the quarter was US$233 million, versus a loss of US$289 million in the same period a year earlier when the world's largest personal computer (PC) maker by shipments took a one-off hit following US tax reform.

The result was ahead of the US$207 million average of 10 analyst estimates compiled by Refinitiv.

Revenue rose 8.5 per cent to US$14.04 billion on a strong performance in its PC and Smart Device business and its Data Center business, just beating the US$13.95 billion analyst view.

Its Mobile Business Group also recorded a pre-tax profit for the first time since it bought Motorola in 2014 for US$2.9 billion, having strugged to integrate the assets.

Lenovo said revenue for its PC and Smart Device Business rose 12 per cent in the three months period.