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Lenovo Plunges More Than 6% Despite Stronger-Than-Expected Earnings

Published 08/15/2019, 12:39 AM
Updated 08/15/2019, 01:52 AM

Investing.com - Hong Kong-listed computer manufacturer Lenovo Group (HK:0992) plunged more than 6% on Thursday in Asia even after the company reported stronger-than-expected earnings in the quarter ended in June.

Net profit for the period jumped to $162 million, compared with the expected $154 million. Revenue was recorded at $12.51 billion, in line with expectation.

Despite the positive numbers, Lenovo warned that the company's outlook is uncertain due to the ongoing trade war between the U.S. and China.

"There is a complexity of macro risks arising from ongoing trade negotiations, import tariff changes implemented by countries and challenges alongside geopolitical uncertainties," according to the company statement.

Earlier this week, U.S. President Donald Trump said he was “not ready” to make a trade deal with China, and that it would be “fine” if the scheduled meetings between the two sides in September were called off.

Share prices of Lenovo slumped 6.3% to HK$5.62 by 12:32 AM ET (04:32 GMT).

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