PC giant Lenovo expected to see drop in quarterly revenue
Steady growth remained a challenge at Chinese hi-tech company’s mobile and data centre business units in the three months to September
Chinese technology titan Lenovo Group is expected to report a weak set of quarterly financial results in the three months to September 30, despite likely stable sales growth in its core personal computer business.
Analysts pointed out that profitability at Lenovo’s mobile and data centre businesses have remained challenging.
Data from Jefferies showed the world’s largest supplier of personal computers is estimated to report a net profit of US$200 million for the second quarter of its fiscal year that ends in March, rebounding from a US$714 million loss in the same period last year.
Total revenue, however, is forecast to decline 9.2 per cent year on year to US$11.03 billion.
“The personal computer market remains volatile,” Jefferies equity analyst Ken Hui said in a report. “However, the company’s guidance of widening personal computer growth ... in the September quarter suggests that the worst is over.”