Lenovo share price sinks 4.47% after its Q4 profit surge more than three-fold on strong PC sales
Following the release of its quarterly results announcement at noon time on Thursday, shares of the world’s largest personal computer maker Lenovo slid lower.
Chinese multi-national technology firm Lenovo Group, popularly known for its laptops and personal computers, posted a profit that increased more than three-fold for the fourth quarter, helped by strong computer sales, the group said on Thursday.
Following the release of its quarterly results announcement at noon time, shares of the world’s largest personal computer maker Lenovo slid lower. The group’s shares fell by 4.64% or HK$0.28, to HK$5.76 at around 2.48pm Hong Kong time as some investors took their winnings off the table after the firm posted bullish quarterly and annual results.
Lenovo’s net profit for the fourth quarter rose to US$118 million, compared to a US$33 million profit a year earlier. Analysts in a Refinitiv poll had expected for profit to come in at US$91.4 million.
Lenovo share price
Year-to-date, Lenovo's shares have risen by 12.3%, having traded at US$5.13 at the start of this year.
It marked a 52-week high of HK$7.58, with its share price shooting up in February to past HK$7.00 after the firm said its quarterly profit for the third quarter reached US$233 million, a turnaround from the loss made a year ago when the firm took a one-off hit due to tax reforms in the United States.
Lenovo’s board has recommended a final dividend of 21.8 Hong Kong cents per share, which is higher than the 20.5 Hong Kong cents in 2018. The proposed final dividend, if approved by shareholders, will be payable on July 24, 2019.
Lenovo earnings report highlights
Lenovo said its revenue rose by 10% from a year ago to US$11.71 billion, which was similar to the street estimate of US$11.65 billion.
For the full financial year ended March, the group posted a profit of US$597 million, a reversal from a loss of US$189 million a year ago. Revenue for the 12 months rose to a record US$51 billion, mainly attributed to a record revenue from the firm’s personal computers and smart devices (PCSD) business, the group said.
The group’s PCSD segment accounts for around 75% of its total revenue.
The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer.
Act on share opportunities today
Go long or short on thousands of international stocks with CFDs.
- Get full exposure for a comparatively small deposit
- Trade on spreads from just 0.1%
- Get greater order book visibility with direct market access
See opportunity on a stock?
Try a risk-free trade in your demo account, and see whether you’re on to something.
- Log in to your demo
- Take your position
- See whether your hunch pays off
See opportunity on a stock?
Don’t miss your chance – upgrade to a live account to take advantage.
- Trade a huge range of popular stocks
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See opportunity on a stock?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
