Lenovo swings to forecast-beating first quarter profit; PC revenue jumps

HONG KONG (Reuters) - Chinese PC maker Lenovo Group swung to a profit and beat estimates in the first quarter on Thursday, helped by a sharp jump in revenue. Net profit came in at $77 million for the three months ended in June, compared with a loss of $72.3 million in the same period a year earlier when it was hit by higher costs amid a shortage of components. That was ahead of an average estimate of $59.37 million from six analysts polled by Thomson Reuters I/B/E/S. Revenue rose 19 percent from a year earlier to $11.91 billion, its second straight quarter of double-digit revenue growth. “The group remains confident in its core PC business, and aims to grow at a premium to the market in revenue without compromising on profitability,” Chairman Yang Yuanqing said in the statement. Lenovo’s shares gained 3.4 percent in early trade on Thursday.