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16-02-2017, 01:19 PM
Lenovo's Profit Misses Estimates After PC Rivals Erode Lead
Lenovo Group Ltd.’s quarterly earnings missed projections as the world’s largest personal computer maker struggles to reboot a floundering PC and smartphone business.
Net income fell 67 percent to $98 million in the quarter that ended in December, Lenovo said in a filing. That compares with the $145.9-million average of analysts’ estimates compiled by Bloomberg. Revenue was down 6 percent to $12.2 billion compared with estimates for $11.7 billion. The Chinese company warned Thursday that its market will remain challenging because of macroeconomic uncertainty and rising component prices.
Lenovo remains the world leader in a personal computer market struggling through a prolonged downturn as people opt for smartphones to handle everyday tasks. But it barely maintained pole position over HP Inc. during the quarter as its chief rival widened its share of the North American market, according to research firm IDC. A rise in component prices also pressured margins. The Beijing-based company is now negotiating a deal to tie up with Japan’s Fujitsu Ltd. and shore up its position, an imperative given the smartphone business it bought with Motorola remains unprofitable.
More details in https://www.bloomberg.com/news/articles/...lobal-lead
Lenovo Group Ltd.’s quarterly earnings missed projections as the world’s largest personal computer maker struggles to reboot a floundering PC and smartphone business.
Net income fell 67 percent to $98 million in the quarter that ended in December, Lenovo said in a filing. That compares with the $145.9-million average of analysts’ estimates compiled by Bloomberg. Revenue was down 6 percent to $12.2 billion compared with estimates for $11.7 billion. The Chinese company warned Thursday that its market will remain challenging because of macroeconomic uncertainty and rising component prices.
Lenovo remains the world leader in a personal computer market struggling through a prolonged downturn as people opt for smartphones to handle everyday tasks. But it barely maintained pole position over HP Inc. during the quarter as its chief rival widened its share of the North American market, according to research firm IDC. A rise in component prices also pressured margins. The Beijing-based company is now negotiating a deal to tie up with Japan’s Fujitsu Ltd. and shore up its position, an imperative given the smartphone business it bought with Motorola remains unprofitable.
More details in https://www.bloomberg.com/news/articles/...lobal-lead
Specuvestor: Asset - Business - Structure.