Lenovo Plunges More Than 6% Despite Stronger-Than-Expected Earnings By Investing.com

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

Net profit for the period jumped $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 its 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 β€œnot ready” to make a trade deal with China, and that it would be β€œfine” 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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