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HONG KONG (Reuters) -China’s Lenovo Group (OTC:LNVGY), the world’s largest maker of personal computers, on Thursday reported October-December revenue of $15.72 billion, up 3% from the same period a year earlier.
The result compared with the $15.25 billion average of eight analyst estimates compiled by LSEG.
Revenue started contracting in 2022 at the end of a boom in demand for PCs and other electronic products brought about by COVID-19. Lenovo then recorded five quarters of revenue decline, with analysts forecasting growth in the sixth.
Net income attributable to shareholders rose 23% to $337 million in October-December, versus analysts’ $309 million estimate.
Researcher Gartner (NYSE:IT) in January reported Lenovo’s third-quarter PC shipments grew 3.2% versus the same period a year earlier. Industry-wide PC shipments likewise grew, by 0.3%, reflecting market recovery after an almost two-year decline.
Lenovo controlled 25.6% of the global PC market during the period, Gartner data showed, with HP (NYSE:HPQ), Dell (NYSE:DELL) and Apple (NASDAQ:AAPL) in second, third and fourth place.
The PC maker is working to improve profitability by expanding non-PC businesses, the most notable of which sells information technology services to enterprises. Revenue for its service business unit rose 10% to $2 billion.
Lenovo’s share price was down 0.58% in morning trade, versus a 0.15% increase in the benchmark Hang Seng Index.
