China’s Lenovo Group, the world’s biggest maker of personal computers, posted on Wednesday a bigger-than-expected 53% rise in third-quarter profit, helped by robust demand from people working from home as COVID-19 restrictions persisted.
Net profit jumped to $395 million for the October-December quarter. That beat an average estimate of $293.7 million from eight analysts, according to Refinitiv data.
Revenue increased 22% to $17.25 billion.”The strong performance has been fueled by Lenovo’s robust growth across business groups as well as structural changes in lifestyle and work habits since the onset of the COVID-19 pandemic,” Lenovo said in a statement.
The all-time-high revenue and profit came as Lenovo said last month it plans to issue Chinese Depository receipts (CDRs) representing up to 10% of its total stock for listing on the Science and Technology Innovation Board of the Shanghai Stock Exchange, the latest in a line of companies looking for a mainland listing.
Pandemic-fuelled buying of laptops and other personal gadgets, as well as televisions, have propped up sales of companies including Samsung Electronics and Panasonic Corp.
According to research firm Gartner, worldwide shipments of personal computers rose 10.7% in the December quarter. Lenovo strengthened its lead in PCs with 27.1% of the market, ahead of HP Inc with 19.8% and Dell Technologies with 16.6%.