By Sherry Qin

Lenovo is scheduled to report fiscal fourth-quarter results on Thursday. Here is what you need to know:

NET PROFIT: The world's largest maker of personal computers is expected to post a 7.3% decline in net profit to $230 million, according to a FactSet poll of eight analysts.

REVENUE: The PC maker's revenue for the three months ended March was likely $15.74 billion, up 14% from the previous year.

Lenovo's Hong Kong-listed shares have given up the DeepSeek-led gains and are roughly flat so far this year following sharp swings over the past two months. The stock fell 14% in April after President Trump announced hefty tariffs on Chinese goods that escalated to 145%. However, shares are up about 11% so far this month after the U.S. and China agreed to substantially lower tariffs on each other for 90 days.

WHAT TO WATCH:

--The Americas made up 34.5% of Lenovo's revenue in fiscal 2024. With China as the PC maker's primary manufacturing base, investors will look for management comments about the tariff impact on its supply chain and future earnings after the recent up-and-down tariff policies. Ahead of U.S. tariffs, UOB analysts had estimated a 10%-15% hit to Lenovo's bottom line for every 10% additional levy on Chinese goods.

--Lenovo's PC shipments in the first three months of 2025 rose 11% from a year earlier, according to IDC data. "The market is clearly showing some level of pull-in in the first quarter this year as both vendors and end-users brace for the impact of U.S. tariffs," said Jean Philippe Bouchard, research vice president with IDC's Worldwide Mobile Device Trackers. However, the uncertainty surrounding U.S. tariffs and associated inflationary pressure could hurt PC demand in the subsequent quarters of 2025, IDC said.

--Investors will likely pay attention to management updates on Lenovo's AI PC shipments and whether the PC replacement cycle could cushion the tariff impact. In February, Lenovo's chief executive told The Wall Street Journal that he was confident about AI PCs accounting for 25% of the company's global PC shipments this year.

Write to Sherry Qin at sherry.qin@wsj.com

(END) Dow Jones Newswires

May 21, 2025 02:37 ET (06:37 GMT)

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