- Lenovo‘s third-quarter revenue reached $18.80 billion, surpassing the anticipated $17.88 billion.
- Net income for the third quarter amounted to $692.7 million, significantly exceeding the estimate of $365.3 million.
- Research and development expenses were reported at $620.8 million, higher than the expected $570.5 million.
- For the nine-month period, Lenovo‘s total revenue was $52.09 billion.
- Net income over the same nine months totaled $1.29 billion.
- The company maintained a gross margin of 16%.
- Lenovo received 29 buy ratings, 3 holds, and no sell recommendations from analysts.
Lenovo on Smartkarma
On Smartkarma, a platform for independent investment research, analysts like Trung Nguyen and Nicolas Baratte provide insights on companies such as Lenovo. Trung Nguyen‘s bearish sentiment on Lenovo‘s high yield issuers reflects recent credit market movements, with iTraxx X-Over widening by 8 bps. European bourses experienced declines, while in the US, the S&P 500 and Nasdaq fell notably.
Nicolas Baratte‘s analysis focuses on Lenovo‘s PC shipments, indicating a flat year-over-year performance in 3Q24. Despite expectations of a great recovery or AI replacement cycle, reports from IDC and Canalys show mixed results, leading to an overall flat trend. Baratte also highlights other key players in the industry, emphasizing the absence of AI fever or an accelerated replacement cycle in the current market landscape.
A look at Lenovo Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 3 | |
| Resilience | 4 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.2 |
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 specializing in the sale and manufacture of personal computers and handheld devices, is positioned for a promising long-term outlook based on the Smartkarma Smart Scores. With a strong score in Resilience and Momentum, Lenovo demonstrates stability and positive market momentum. This suggests that the company has the potential to weather challenges and sustain growth in the future.
Furthermore, Lenovo‘s above-average scores in Growth indicate potential for expansion and development in the coming years. While the Value and Dividend scores may not be as high, the overall outlook for Lenovo appears optimistic, especially considering its diverse business model encompassing Internet services and IT services, along with contracting manufacturing operations. This diversified approach may contribute to Lenovo‘s long-term success and resilience in the ever-evolving technology market.
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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