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Sony Poised to Shine on Thriving PS4, Image Sensors & Music
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Sony Corporation has gradually but steadily morphed into an integrated multimedia company with diverse profitable operating divisions.
The company is the world's leading manufacturer of image sensors for cameras and CCTV, and also boasts a thriving music business. Recent positive trends in the semiconductor and imaging divisions have also been boosting earnings for this gaming giant.
Sony has really been firing on all cylinders to boost profitability and the results are slowly beginning to manifest themselves in better operating income and margin performance.
The company’s most significant growth driver, the PlayStation4 console, is running strong even after three years of release. PS4’s sales are more than double that of rival Microsoft Corp.'s (MSFT - Free Report) Xbox One console, and quadruple of Nintendo Co.'s (NTDOY - Free Report) Wii U console. PS4 clearly emerges as the leader in the current generation of video game consoles.
Coming to Virtual reality (“VR”), Sony is gearing up to capitalize on the burgeoning new field in the gaming world. PS4 Pro, the upgraded version of PS4 gaming console and virtual reality systems have been raking in huge profits.In the quarter that ended in June, Sony sold over 500,000 headsets. The company’s gaming business is actually well on its way toward its highest-ever annual operating profit of ¥180 billion (roughly $1.6 billion).
The latest data, according to IDC, projects dedicated augmented reality and virtual reality headsets to grow to 100 million units by 2021. This is up from last year’s roughly 10 million shipments and reflects a five-year CAGR of a whopping 57.7%. Sony seems exceptionally well positioned to capitalize on this trend.
Sony also rolled out a wave of products ahead of IFA 2017, including three smartphones, a smart speaker, and AirPod-esque headphones.
The company also undertook successful efforts to revive its Semiconductor segment, which had been hit drastically by the Kumamoto earthquakes. Over the past two quarters, the semiconductor segment almost single-handedly fueled operating income growth. In first-quarter fiscal 2017, Semiconductors sales and operating revenues jumped 41.4% year over year to ¥204.3 billion ($1.8 billion), on the back of strong sales of image sensors for mobile products.
Buoyed by upbeat industry trends and lower currency volatility, the company also raised its fiscal 2017 guidance in its last earnings report.
Sony has also undertaken several measures in its Branded Product Business, which include Mobile Communications, Imaging Product & Solutions, and Home Entertainment & Sound segments, to ensure stronger growth. These steps, which include cost-reduction initiatives, lower exposure in low-profit geographic regions and reduction in advertising & promotion expenses, are expected to benefit this business over the long run.
Sony has created an impressive ecosystem of the PlayStation family, and its restructuring efforts and streamlined operations will help generate sustainable profit, thus propelling future growth.
Another stock in the same sector is Ubiquiti Networks, Inc. .
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
Image: Bigstock
Sony Poised to Shine on Thriving PS4, Image Sensors & Music
Sony Corporation has gradually but steadily morphed into an integrated multimedia company with diverse profitable operating divisions.
The company is the world's leading manufacturer of image sensors for cameras and CCTV, and also boasts a thriving music business. Recent positive trends in the semiconductor and imaging divisions have also been boosting earnings for this gaming giant.
Sony has really been firing on all cylinders to boost profitability and the results are slowly beginning to manifest themselves in better operating income and margin performance.
The company’s most significant growth driver, the PlayStation4 console, is running strong even after three years of release. PS4’s sales are more than double that of rival Microsoft Corp.'s (MSFT - Free Report) Xbox One console, and quadruple of Nintendo Co.'s (NTDOY - Free Report) Wii U console. PS4 clearly emerges as the leader in the current generation of video game consoles.
Coming to Virtual reality (“VR”), Sony is gearing up to capitalize on the burgeoning new field in the gaming world. PS4 Pro, the upgraded version of PS4 gaming console and virtual reality systems have been raking in huge profits.In the quarter that ended in June, Sony sold over 500,000 headsets. The company’s gaming business is actually well on its way toward its highest-ever annual operating profit of ¥180 billion (roughly $1.6 billion).
The latest data, according to IDC, projects dedicated augmented reality and virtual reality headsets to grow to 100 million units by 2021. This is up from last year’s roughly 10 million shipments and reflects a five-year CAGR of a whopping 57.7%. Sony seems exceptionally well positioned to capitalize on this trend.
Sony also rolled out a wave of products ahead of IFA 2017, including three smartphones, a smart speaker, and AirPod-esque headphones.
The company also undertook successful efforts to revive its Semiconductor segment, which had been hit drastically by the Kumamoto earthquakes. Over the past two quarters, the semiconductor segment almost single-handedly fueled operating income growth. In first-quarter fiscal 2017, Semiconductors sales and operating revenues jumped 41.4% year over year to ¥204.3 billion ($1.8 billion), on the back of strong sales of image sensors for mobile products.
Buoyed by upbeat industry trends and lower currency volatility, the company also raised its fiscal 2017 guidance in its last earnings report.
Sony has also undertaken several measures in its Branded Product Business, which include Mobile Communications, Imaging Product & Solutions, and Home Entertainment & Sound segments, to ensure stronger growth. These steps, which include cost-reduction initiatives, lower exposure in low-profit geographic regions and reduction in advertising & promotion expenses, are expected to benefit this business over the long run.
Sony has created an impressive ecosystem of the PlayStation family, and its restructuring efforts and streamlined operations will help generate sustainable profit, thus propelling future growth.
Another stock in the same sector is Ubiquiti Networks, Inc. .
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>