Seeking Alpha

Lenovo's net profit jumps as smartphone sales surge

  • Lenovo's (LNVGF) FY net profit leapt 29% to $817M and met forecasts, while revenue climbed 14% to $38.71B.
  • Personal computer shipments grew 5% to 55M units despite the broader market contracting.
  • Lenovo's smartphone shipments surged 72% to over 50M units, "driven by the strong growth in China and emerging markets."
  • Revenue at Lenovo's mobile Internet and digital-home business - which develops the company's smartphones - soared 86.1% to $5.7B.
  • However, Lenovo's Chinese sales rose just 1.3% to $14.7B and accounted for 38% of the company's overall revenues. Operating profit was $788M out of a total of $1.05B. Lenovo's operating margin in the country increased 0.9 of a percentage point to 5.4%.
  • EMEA sales +27.1%, Americas +31.1%.
  • Q4 net profit grew 25% to $158.3M but missed consensus of $163.6M. Sales increased to $9.4B from $7.83B and topped forecasts of $9B.

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Comments (7)
  • User 16202282
    , contributor
    Comments (223) | Send Message
     
    Ba BAM! Take that Lenovo Nay Sayers that clipped their stock price on the Motorola Deal...
    21 May 2014, 09:55 AM Reply Like
  • Shaduc
    , contributor
    Comments (1648) | Send Message
     
    Lenovo has not purchased Motorola Mobility yet.
    21 May 2014, 09:57 AM Reply Like
  • User 12115671
    , contributor
    Comments (700) | Send Message
     
    Ya but the deal is going through and the stock behaved as such.
    21 May 2014, 12:29 PM Reply Like
  • GR-Geo
    , contributor
    Comments (25) | Send Message
     
    Total dividend last year 18.5 cents of HK$. This year 24!

     

    All this without calculating Motorola and IBM small servers that have a nice profit margin.

     

    Lenovo's fair value is somewhere in the area of 12-14 HK$ and in 2-3 years from now it will be in the area of 20 if there is not a major decline in stock markets. If we have something like a mini crash then this will happen but will take some more time.

     

    Lenovo is an excellent company and it's CEO is a star!
    21 May 2014, 11:38 AM Reply Like
  • User 16202282
    , contributor
    Comments (223) | Send Message
     
    9.5 HKD is going to be looking cheap in 2015.
    22 May 2014, 03:44 PM Reply Like
  • psychological-dividends
    , contributor
    Comments (809) | Send Message
     
    I read the piece of Lenovo in Bloomberg Businessweek. Talk about a scrappy company.

     

    I'm very impressed with their business model.
    22 May 2014, 01:00 AM Reply Like
  • User 16202282
    , contributor
    Comments (223) | Send Message
     
    Lenovo is my largest holding. Watch it pull an Apple 08-11 stock bounce once it's phones are sold in the United States with the same strength as Samsung.

     

    Once it continues to outpace in the PC market with their amazing yoga laptops and cheap PC's that make you wonder how Dell is still in business.

     

    IBM gave birth to a chinese monster that's gonna swallow Apple and Samsung, and even possibly Microsoft one day. I wouldn't put it past them to make it a Chinese operation from top to bottom.
    22 May 2014, 03:43 PM Reply Like
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