Lenovo Q3 net profit +29%; warns that deal will hurt earnings

|About: Lenovo Group Ltd. ADR (LNVGY)|By:, SA News Editor

Lenovo's (LNVGY) FQ3 net profit climbed 29% to $265.3M, easily beating consensus of $247.2M.

Revenue increased 15% to $10.79B, the first time sales have topped $10B.

The company's earnings were lifted by robust sales of PCs and mobile devices in China.

The firm sold 17.3M smartphones and tablets, and 15.3M PCs.

Laptop sales +11%, desktops +12%.

However, Lenovo warned that its acquisitions of Motorola Mobility from Google and of IBM's low-end server unit could hurt profitability in the short term. Still, Lenovo reckons it can turn Motorola around within three-to-five quarters.(PR)