Investing.com -- Shares of Lenovo Group Ltd (HKSE:HK:0992) fell by 6.4% after the company reported mixed financial results for its third fiscal quarter, which ended on December 31, 2024. While revenue exceeded expectations, operating profit fell short of analyst predictions.
Lenovo’s revenue for the quarter reached US$18.8 billion, marking a 5% increase from the previous quarter and a 20% rise YoY. This performance was 2% above estimates and 5% above the consensus, mainly driven by the company’s Intelligent Devices Group (IDG) and Infrastructure Solutions Group (ISG).
Despite the positive revenue figures, Lenovo’s operating profit of US$688 million, although up 6% from the previous quarter and 12% YoY, was 3% above the consensus.
The company’s net profit saw a significant jump to US$693 million, which represents a 93% increase from the previous quarter and a 106% increase YoY. This substantial profit beat was largely due to a one-time income tax credit of US$282 million, primarily from deferred tax credit.
When this one-time tax benefit is excluded, Lenovo’s net profit was US$411 million, up 15% from the previous quarter and 22% YoY, still managing to surpass MSe by 1% and consensus by 11%.
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