Lenovo's Q3 revenue falls 8% to $12.9B, net profit beats estimates

Tomohiro Ohsumi | Bloomberg | Getty Images

The world's largest personal computer (PC) maker Lenovo Group said on Wednesday its third-quarter revenue fell 8 percent to $12.9 billion due to slower global PC demand and weaker smartphone sales.

The company said net profit reached $300 million, from $253 million in the same period a year prior.

The results compared with the average $13.21 billion revenue and $237.7 million net profit estimates of analysts polled by Thomson Reuters SmartEstimates.

Beijing-based Lenovo continued to consolidate its hold on the slowing PC market. Its PC shipments fell 4.2 percent during the quarter versus 8.3 percent in the broader industry, with growth strong in North America, according to market researcher Gartner.

Lenovo in 2014 made two multi-billion-dollar acquisitions to diversify away from the shrinking PC market. It bought Alphabet Inc's Motorola handset unit and International Business Machines Corp's low-end server business.

Shares of Lenovo fell 3.7 percent to HK$7.09 before the midday break prior to the results, compared with a 2.5 percent fall on the broader Hang Seng index.