Update | Lenovo Q3 revenue surges 31 per cent, stock rallies to end near 3-month peak
Lenovo to accelerate expansion of smartphone, server business
Computer giant Lenovo Group, which posted quarterly profit that beat estimates, aims to step up the expansion of its smartphone and commodity server divisions into highly profitable global businesses over the next few quarters.
“These two businesses will be our next growth engines,” Lenovo chairman and chief executive Yang Yuanqing told reporters in a conference call on Tuesday.
Lenovo, the world’s biggest supplier of personal computers, saw its share price jump as much 8.6 per cent before finishing up 7.27 per cent to HK$10.92 in Tuesday's trading, after reporting better-than-expected earnings for its fiscal third quarter ended December 31.
It was the stock’s highest close since reaching HK$11.36 on November 5.
Total revenue grew 31 per cent to US$14.1 billion, up from US$10.8 billion a year earlier and above the market consensus estimate of US$13.5 billion.
Lenovo, which operates in more than 160 countries, attributed the hefty revenue gains from strong personal computer sales at its Europe-Middle East, Africa and Americas geographic markets.