, Columnist
Lenovo’s Profit Beat Came From Accounting Gains
The PC maker’s balance sheet is the main reason why earnings came in higher than expected.
The downside to an upside surprise.
Photographer: Krisztian Bocsi/Bloomberg
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Lenovo Group Ltd.’s net income beat analysts’ expectations by $53 million, or 45 percent.
While that upside surprise was helped by slightly stronger revenue and a slimmer operating-expense margin — from a reduction in sales and distribution costs — operating income benefited a lot from one-time accounting items.