Lenovo's Second-Quarter Profit Falls 54%, But Tops Consensus

By Sherry Qin

Lenovo Group's net profit fell 54% in its fiscal second quarter due to a high base in the same period last year when market conditions were more favorable.

Net profit for the three months ended September was $249 million, the world's largest PC maker said Thursday, compared with a profit of $541 million a year earlier. However, the result beat analysts' expectations of $236 million in a FactSet poll.

Revenue fell 16% on year to $14.41 billion. However both its main product segment of PCs, smartphones and other devices, as well as its infrastructure-solutions business, posted a sequential recovery in revenue.

The company's PC business is stabilizing and well-positioned for a year-on-year recovery in the last quarter of 2023, it said. Its inventory position has strengthened steadily, shrinking by more than $2.0 billion from a year ago.

The total available market for the global PC sector is regressing to pre-Covid levels in the short term but could remain at a level structurally higher than the prepandemic period in the long term, it added.

The company reiterated that improving profitability remains a medium-term priority.

Write to Sherry Qin at sherry.qin@wsj.com

(END) Dow Jones Newswires

November 15, 2023 23:58 ET (04:58 GMT)

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