Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  News  >  Companies  >  All News

News : Companies
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors

Lenovo's third-quarter beat, confidence on managing virus impact boost shares

share with twitter share with LinkedIn share with facebook
share via e-mail
02/20/2020 | 02:34am EDT
Illustration photo of a Lenovo logo

Lenovo Group, the world's biggest PC maker, posted a better than expected profit on Thursday and said its global operations would help it tackle short-term headwinds from China's coronavirus outbreak, sending its shares up nearly 8%.

The Chinese company reported an 11% rise in net profit for the quarter ended December to $258 million thanks to strong demand for its PCs and smart devices, beating an average $223 million estimate of seven analysts, according to Refinitiv data. Revenue rose to a record $14.1 billion.

"The numbers are very good," said Christopher Yim, analyst at BOCOM International, adding that the PC business' profitability was impressive.

Lenovo is among companies facing disruptions to their supply chain after local governments in China extended a Lunar New Year holiday and imposed strict travel curbs to limit the spread of the coronavirus.

IPhone maker Apple warned earlier this week it will not be able to meet sales forecasts for the current quarter as the virus outbreak was pressuring its supply chain.

One of Lenovo's biggest factories is in the central Chinese city of Wuhan, the epicentre of the outbreak, where businesses remain shut, although its factories in the cities of Shenzhen and Hefei resumed work on Feb. 10.

"The vast majority of the group's factories in China have reopened and are operational on a limited basis, although its suppliers and even logistics services across the countries remained impacted," Lenovo said in a statement.

"Nevertheless, given its extensive global footprint, the company is well positioned to address the supply challenges by leveraging its strength as a global company with worldwide manufacturing capabilities and supply chain efficiency."

Yim of BOCOM International said Lenovo was better placed than some of its technology peers because of spread out manufacturing facilities.

"They have a global manufacturing base, so that could put them in a relatively better position."

The global PC market grew 2.3% in the quarter to December, as customers replaced machines to migrate to Windows 10, market research firm Gartner said last month. Lenovo took a 24.8% market share during the quarter, ahead of rivals HP Inc and Dell, it said.

The year began on a positive note for Lenovo, which won a respite in the U.S.-China trade war after an early January interim agreement between Washington and Beijing eased 18 months of tensions.

Laptop computers were among $156 billion worth of Chinese goods that Washington had threatened to hit with tariffs in December, along with cellphones and toys, which U.S. President Donald Trump later decided not to implement.

By Brenda Goh

Stocks mentioned in the article
ChangeLast1st jan.
APPLE INC. 2.56% 266.07 Delayed Quote.-11.65%
GARTNER INC 3.77% 104.97 Delayed Quote.-34.35%
HP INC. 3.97% 15.72 Delayed Quote.-26.42%
LENOVO GROUP LIMITED -0.24% 4.22 End-of-day quote.-0.24%
share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news "Companies"
04:23pCERIDIAN HCM : to Hold Virtual Annual Meeting of Stockholders
PU
04:23pFINJAN HOLDINGS, INC. : Other Events, Financial Statements and Exhibits (form 8-K)
AQ
04:23pCITIGROUP INC : Financial Statements and Exhibits (form 8-K)
AQ
04:23pACELRX PHARMACEUTICALS INC : Change in Directors or Principal Officers, Financial Statements and Exhibits (form 8-K)
AQ
04:23pYRC WORLDWIDE INC. : Entry into a Material Definitive Agreement, Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant (form 8-K)
AQ
04:23pAPPLIED GENETIC TECHNOLOGIES : Regulation FD Disclosure, Financial Statements and Exhibits (form 8-K/A)
AQ
04:22pGainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against Fifth Third Bancorp. (FITB)
GL
04:21pKINDRED BIOSCIENCES, INC. : Entry into a Material Definitive Agreement, Financial Statements and Exhibits (form 8-K)
AQ
04:21pALLIANCE DATA SYSTEMS CORP : Entry into a Material Definitive Agreement, Termination of a Material Definitive Agreement, Financial Statements and Exhibits (form 8-K)
AQ
04:21pACCELERATE DIAGNOSTICS, INC : Change in Directors or Principal Officers, Financial Statements and Exhibits (form 8-K)
AQ
Latest news "Companies"