Lenovo Clocks Slowest Revenue Growth In 9 Quarters

Lenovo Group Ltd LNVGY reported first-quarter FY23 revenue growth of 5% year-on-year to $17 billion in constant currency.
It marked Lenovo's smallest revenue growth in nine quarters due to ease after a pandemic-fuelled boom and COVID-19 resurgence in China, Reuters reports.
Global shipments fell 11.1% in the past quarter Y/Y, the most significant year-over-year decline since Q2 of 2013, the report cited Counterpoint.
Lenovo's total PC shipments fell 12.7% to 17.4 million units primarily due to weak consumer demand, Counterpoint said. However, Lenovo maintained its leadership in the global PC market with a 24.4% share.
SSG revenue grew 23%, and the operating margin remained high at 23%.
ISG revenue grew 14% Y/Y and sustained its profitability. The company said IDG had an operating profit of over $1 billion, outgrowing the market.
CFO Wai Ming Wong said Lenovo's device business saw quarterly revenue decline 3% due to "the weak consumer PC demand and the COVID-led supply constraints."
The non-PC device businesses saw a 12% increase in revenue. Revenue from smartphone sales grew over 20% Y/Y.
Net income rose 11% Y/Y to $516 million, translating to EPS of $4.39.
Outlook: Chair and CEO Yang Yuanqing expects this year's global PC shipments to be 300 million units - 310 million units. This would be a 10% decline from the 341 million units shipped last year, as per Reuters report, which cited data firm Canalys.
But Yang said supply-chain shortages, which plagued many hardware manufacturers earlier this year, have improved.
Lenovo has seen some price increases in the semiconductor industry, he added.
Price Action: LNVGY shares closed lower by 0.89% at $17.84 on Tuesday.
Photo Via Wikimedia Commons

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