By Sherry Qin
Lenovo Group is scheduled to report results for its fiscal second quarter on Thursday. Here is what you need to know:
NET PROFIT FORECAST: The world’s largest personal-computer maker is expected to post net profit of $236 million, a FactSet poll of six analysts showed. That would be down from $512 million in the year-earlier period. The company said that improving profitability remains the group’s medium-term priority after its profit fell 66% in the fiscal first quarter.
REVENUE FORECAST: Revenue is expected to drop to $14.41 billion from $17.09 billion a year earlier, according to the FactSet poll.
WHAT TO WATCH:
— PC DEMAND: Revenue from its main devices segment, which includes PC, tablet, smartphone and other smart devices, fell for several consecutive quarters due to a downturn in global PC demand. Lenovo said its PC business is stabilizing and well positioned for a recovery later this year after its fiscal first-quarter results. Investors will be keen to hear Lenovo’s guidance on sales trends in recent months and on a potential recovery timeline.
— CHINA REBOUND: China revenue fell 29% in the first quarter due to lower demand for PC and infrastructure business. Investors will be looking out for Lenovo’s comments on the strength of its China sales in the second quarter.
— Non-PC Businesses: The company has voiced plans to make further investments in non-PC areas, including fast-growing accessories and work-collaboration solutions. It has said it sees greater opportunities in AI-related applications after its first-quarter results. Investors will focus on Lenovo’s updates on its infrastructure solutions business and AI chip developments.
Write to Sherry Qin at [email protected]
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