Lenovo Clocks Record Annual Revenue After Strong Q4 Earnings

Lenovo Group Ltd LNVGY reported fourth-quarter FY21 revenue growth of 48% year-on-year to $15.6 billion, beating the analyst consensus of $14.4 billion.
Revenue from PC and Smart Devices (PCSD) rose 46% Y/Y to $12.4 billion, Mobile Business Group (MBG) rose 86% Y/Y to $1.54 billion, and Data Center Group (DCG) rose 32% Y/Y to $1.6 billion.
Gross profit rose 44% Y/Y to $2.7 billion, with the margin contracting 40 basis points to 17.2%.
Operating profit increased 188% Y/Y to $479 million, but the margin expanded 150 basis points to 3.1%.
Net income rose 512% Y/Y to $260 million, translating to EPS of $1.94. Net margin expanded 130 basis points to 1.7%.
Q4 results closed out a record year, with annual Group revenue surging past $60 billion, adding more than $10 billion on the previous fiscal year.
Chairman and CEO Yuanqing Yang aims to capture the huge growth opportunities created by the market trends of information consumption upgrade, infrastructure upgrade, and application upgrade to drive long-term sustainable growth and a smarter future.
Price action: LNVGY shares closed higher by 3.21% at $25.07 on Wednesday.

Earnings Calendar