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.
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