Lenovo Rides Work-From-House Demand to Beat Q1 Revenue Expectations

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China’s Lenovo Group, the world’s largest maker of non-public computer systems, on Wednesday posted a better-than-expected leap in first-quarter revenue as COVID-19 curbs continued to spur work-from-home demand.

Shares within the firm rose by as a lot as 9.7 % after its outcomes, and had been on the right track for his or her largest each day share acquire since March 30.

Revenue for the quarter ended June 30 rose 119 % to $466 million (roughly Rs. 3.470 crores), versus $213 million (roughly Rs. 1,590 crores) in the identical quarter final yr, and above a mean estimate of $345.23 million (roughly Rs. 2,570 crores) from six analysts, in response to Refinitiv knowledge.

Income rose 27 % to $16.9 billion (roughly Rs. 12,580 crores) from $13.3 billion (roughly Rs. 99,040 crores) a yr earlier. Analysts anticipated income of $16 billion (roughly Rs. 1,19,140 crores). It additionally posted internet earnings margin of two.8 %, which the corporate stated was the best in a few years

Lenovo stated a restoration in IT spending was fuelling demand and supporting increased common promoting costs of its merchandise, and it anticipated the whole private laptop market would proceed to develop over the subsequent 5 years.

“The accelerated digital and clever transformation has created vital market alternatives globally,” Lenovo’s Chairman and CEO Yuanqing Yang stated in an announcement.

“We’ll proceed to extend R&D funding, aiming to double it over the subsequent three years.”

The outcomes had been the primary earnings launched by the corporate because it reorganised its enterprise teams in February.

Analysts say pandemic-driven shopper demand for PCs is beginning to gradual, however shortages of elements like chips, pushed by stronger-than-expected international demand for PCs, tablets, and digital automobiles, stay an business concern.

Worldwide shipments of non-public computer systems rose 13 % year-on-year to hit 82.3 million models within the second quarter of 2021, with desktop shipments rising for the primary time for the reason that fourth quarter of 2019, analysis agency Canalys stated in a report final month.

Lenovo prolonged its business lead, delivery greater than 20 million models for the third consecutive quarter to take 24.4 % market share, in contrast with HP with 22.6 % and Dell with 17 %, Canalys stated.

© Thomson Reuters 2021

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