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Lenovo's Q4 profit growth of 512% beats estimates

Credit: REUTERS/THOMAS WHITE

China's Lenovo Group on Thursday posted a better-than-expected rise of 512% in fourth-quarter profit, as more consumers working and studying from home powered demand for the world's biggest maker of personal computers.

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HONG KONG, May 27 (Reuters) - China's Lenovo Group 0992.HK on Thursday posted a better-than-expected rise of 512% in fourth-quarter profit, as more consumers working and studying from home powered demand for the world's biggest maker of personal computers.

Profit for the quarter ended March 31 jumped to $260 million, above an average estimate of $204.7 million from seven analysts, according to Refinitiv data.

Revenue rose 48% to $15.63 billion from $10.58 billion a year earlier. Analysts expected a revenue of $14.33 billion.

Pandemic-fuelled buying of laptops, televisions and personal gadgets have propped up sales of various electronic companies including rival Samsung Electronics 005930.KS.

Lenovo said in a statement its board recommended a final dividend of 24 Hong Kong cents per share for the year ended March 31. In 2020, it paid 21.5 cents per share.

According to research firm Gartner, worldwide shipments of personal computers rose nearly a third in the March quarter, following a weak 2020 base, the fastest year-over-year growth since Gartner began tracking the PC market two decades ago.

Lenovo strengthened its lead in PCs with a quarter of share of the market, ahead of HP Inc HPQ.Nwith 21.4% and Dell Technologies DELL.N with 16.5%, Gartner said.

(Reporting by Pei Li; Editing by Devika Syamnath)

((Pei.Li@thomsonreuters.com; +852 64325868;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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