Lenovo (992) Earnings: 2Q Revenue and Net Income Surpass Estimates with Strong Financial Performance
- Lenovo‘s second-quarter revenue surpassed expectations, reaching $17.85 billion against an estimated $16.33 billion.
- The company’s net income for the same period was $358.5 million, beating the estimate of $343.3 million.
- Research and development expenses were slightly lower than anticipated, totaling $547.5 million compared to the estimate of $551.5 million.
- Lenovo reported a gross margin of 15.7%, which was below the expected 17%.
- For the first half of the year, Lenovo achieved a total revenue of $33.30 billion.
- The net income for the first half amounted to $601.9 million.
- An interim dividend per share was declared at 8.5 Hong Kong cents.
- Analyst ratings for Lenovo include 29 buys, 2 holds, and no sells.
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Lenovo on Smartkarma
Analyst coverage of Lenovo on Smartkarma showcases contrasting sentiments from various experts. Nicolas Baratte‘s recent report indicates that 3Q24 PC shipments remained flat year-over-year, with a lack of significant growth catalysts in the market. In contrast, an analysis by Leonard Law, CFA, presents a bullish stance on Lenovo in their Morning Views Asia. However, another report by the same author expresses a bearish outlook on the company.
Additionally, the Tech Supply Chain Tracker‘s insights highlight Lenovo‘s strategic partnerships, such as the collaboration with SDC for slidable display devices by 2025. This partnership signifies Lenovo‘s focus on innovation and diversification in the tech industry, amidst updates on global market trends and technological advancements. The varying opinions and market insights from analysts provide investors with a comprehensive view of Lenovo‘s performance and potential opportunities.
A look at Lenovo Smart Scores
Factor | Score | Magnitude |
---|---|---|
Value | 2 | |
Dividend | 3 | |
Growth | 3 | |
Resilience | 3 | |
Momentum | 3 | |
OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Lenovo Group Limited, a company known for selling and manufacturing personal computers and handheld devices, is showing a mixed long-term outlook according to Smartkarma Smart Scores. With a Value score of 2, the company is perceived as having moderate value potential. In terms of Dividend, Growth, Resilience, and Momentum, Lenovo scores a 3 across the board, indicating a balanced performance in these areas. This suggests that while the company may not be considered a high-value investment at the moment, it demonstrates steady growth, resilience, and momentum in the market.
Lenovo‘s focus on personal computers, handheld devices, Internet services, and IT services, coupled with a contracting manufacturing business, positions it as a diversified player in the technology sector. Investors looking at Lenovo should consider its balanced performance across Value, Dividend, Growth, Resilience, and Momentum factors when evaluating the company’s long-term potential in the ever-evolving tech industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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