Lenovo Group Ltd. shares
992,
jumped in early commerce on Monday, as traders shrugged off the newest drop within the Chinese expertise big’s quarterly revenue and seemed ahead to an anticipated rebound later within the 12 months.
The inventory has gained as a lot as 7.2% and was final up 5.3% at 7.14 Hong Kong {dollars} (US$0.91).
The rally got here after Lenovo, the world’s largest personal-computer maker, on Friday posted a 32% revenue drop for its fiscal third quarter, as PC gross sales fell amid weak client spending and declining electronics demand globally. The bottom-line decline was narrower than some analysts’ expectations.
The firm’s chief government, in an interview with The Wall Street Journal on Friday, guided for resumed industry-wide gross sales development from the second half of 2023, which might assist Lenovo’s earnings rebound. Global PC gross sales quantity fell 16% final 12 months, the sector’s worst gross sales drop in over a decade, based on market analysis firm Canalys.
Analysts additionally pointed to the relative resilience in Lenovo’s non-PC companies, together with server and IT-solutions operations. “Server and solutions would remain as the bright spots, helping to mitigate PC weakness,” Citi analysts stated in a be aware. The two segments each delivered record-high earnings through the October-December quarter.
“We think further downside could be limited, and a potential demand stabilization and margin recovery from 2H 2023 would serve as positive catalysts,” the Citi analysts stated.
Source web site: www.marketwatch.com