Lenovo reports its latest quarterly earnings Thursday, and expectations are the numbers won’t be good, Bloomberg news reports. In a story that documents how analysts are downgrading the stock, Bloomberg notes one common theme: Lenovo’s struggles in the mobile phone market.

Lenovo Analysts Slash Outlook on Company’s ‘Mobile Crisis’

So reads the headline on the Bloomberg story, written by David Ramli.

Stock has been worst performer in Hang Seng in past year
Analysts expect sales out Thursday to show 7.6% decline

So read the subheads on the report.

WRAL TechWire reported just two weeks ago that a Morgan Stanley analyst had said “sell” Lenovo shares.

The Bloomberg story follows recent turbulence within Lenovo where another recent reorganization shifted top jobs within the mobile telecommunications group. Sales have plummeted, dropping Lenovo out of the top five among global sellers which Lenovo had joined after acquiring Motorola Mobility from Google two years ago.

“At least three analysts have cut their rating on Lenovo shares in the last month, as the company prepares to report fourth-quarter results Thursday,” Bloomberg noted.

One analyst at HSBC Securities has written that Lenovo faces a “mobile crisis.”

Another analyst at Principal Global Investors told Bloomberg: “You can hardly find any bright spots.The smartphone market was the last thing that we had some hope on and it failed.”

Lenovo continues to lead the world in PC sales, capturing a larger market share even as overall shipments continue to fall. However, Lenovo has increased sales in the United States – a big bright spot and a major point of emphasis for the company.

Its server unit, which is based in Morrisville near one of Lenovo’s two global executive headquarters (the other is in Beijing), has shown growth.

Lenovo also recently created a $500 million investment fund designed to accelerate development of new products.

But in mobile ..

Bloomberg points out that Lenovo shares have fallen “more than 60 percent” over the last year, making it “the worst performer” in the Hong Kong-focused Hang Seng index.

In a statement to Bloomberg, Lenovo said that it had a “clear strategy” for Motorola.

The company is expected to launch new phones in the near future with its annual tech showcase coming up in San Francisco.

Another problem for Lenovo is debt. The company has more than $3.2 billion in debt on its books, according to Bloomberg.

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