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Gaming, Home Entertainment to Aid Sony's (SNE) Q4 Earnings
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Sony Corporation is set to report fourth-quarter and fiscal 2017 results on Apr 27.
In the last reported quarter, the company delivered earnings of $1.89 per share, reflecting a beat of 64.4%. Overall, Sony has a striking earnings surprise history, registering an average positive surprise of a whopping 79.8% over the trailing four quarters, beating estimates strongly all through.
Let’s see how things are shaping up for this announcement.
Factors to Consider
Over the past few quarters, Sony’s flagship gaming product, the PlayStation (PS), has been acting as a solid growth catalyst. Particularly, sales of PS4, the latest generation gaming console, have outnumbered all its previous versions. The company has reportedly sold more than 75 million PlayStation 4 consoles since the launch of the line four years ago.
Burgeoning demand for next-generation video game consoles, explosion in eSports and the massive digital shift in the video game industry are tailwinds for the Gaming segment. Augmented and virtual reality might also prove to be catalysts for Sony’s gaming business in the quarter under review. The company is largely banking on its humongous PS4 customer base for increased traction of its VR products and new games. Further, an array of game applications for mobile products launched over the past few quarters is likely to act as a catalyst for the segment’s sales.
Sony Corporation Price, Consensus and EPS Surprise
Moreover, improvement in the product mix on account of a shift to high value-added models is expected to benefit the Imaging Products & Solutions as well as Home Entertainment & Sound segments. The company is also experiencing strong growth in its Music segment, driven by higher-than-expected Visual Media and Platform sales as well as Recorded Music sales.
Further, increase in media networks and television productions sales as well as insurance premium revenues are expected to stoke growth of the Pictures and Financial Services segment, respectively. Expanding image sensors and demand for mobile products should boost the growth prospects of Sony’s Semiconductors segment.
Further, Sony’s consistent efforts on cost-saving initiatives, lower exposure in low-profit geographic regions and reduction in advertising & promotion expenses are expected to prove conducive to bottom-line growth in the to-be-reported quarter. This apart, the company’s major restructuring and internal shuffle efforts are also expected to drive profitability in the upcoming results.
Earnings Whispers
Our proven model does not show that Sony is likely to beat estimates in this quarter. This is because a stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or at least 3 (Hold) for this to happen. This is not the case here as you will see below:
Zacks ESP: The company’s Earnings ESP is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Sony carries a Zacks Rank #1, which increases the predictive power of the ESP. However, the company’s ESP of 0.00% makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks That Warrant a Look
Here are some companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter:
Century Aluminum Company (CENX - Free Report) , with Earnings ESP of +29.41% and a Zacks Rank of 1, is slated to report results on May 3.
Cardtronics PLC has an Earnings ESP of +10.00% and a Zacks Rank of 2. The company is likely to release earnings on May 3.
Investor Alert: Breakthroughs Pending
A medical advance is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating substantial revenue, and even more wondrous products are in the pipeline.
Cures for a variety of deadly diseases are in sight, and so are big potential profits for early investors. Zacks names 5 stocks to buy now.
Image: Bigstock
Gaming, Home Entertainment to Aid Sony's (SNE) Q4 Earnings
Sony Corporation is set to report fourth-quarter and fiscal 2017 results on Apr 27.
In the last reported quarter, the company delivered earnings of $1.89 per share, reflecting a beat of 64.4%. Overall, Sony has a striking earnings surprise history, registering an average positive surprise of a whopping 79.8% over the trailing four quarters, beating estimates strongly all through.
Let’s see how things are shaping up for this announcement.
Factors to Consider
Over the past few quarters, Sony’s flagship gaming product, the PlayStation (PS), has been acting as a solid growth catalyst. Particularly, sales of PS4, the latest generation gaming console, have outnumbered all its previous versions. The company has reportedly sold more than 75 million PlayStation 4 consoles since the launch of the line four years ago.
Burgeoning demand for next-generation video game consoles, explosion in eSports and the massive digital shift in the video game industry are tailwinds for the Gaming segment. Augmented and virtual reality might also prove to be catalysts for Sony’s gaming business in the quarter under review. The company is largely banking on its humongous PS4 customer base for increased traction of its VR products and new games. Further, an array of game applications for mobile products launched over the past few quarters is likely to act as a catalyst for the segment’s sales.
Sony Corporation Price, Consensus and EPS Surprise
Sony Corporation Price, Consensus and EPS Surprise | Sony Corporation Quote
Moreover, improvement in the product mix on account of a shift to high value-added models is expected to benefit the Imaging Products & Solutions as well as Home Entertainment & Sound segments. The company is also experiencing strong growth in its Music segment, driven by higher-than-expected Visual Media and Platform sales as well as Recorded Music sales.
Further, increase in media networks and television productions sales as well as insurance premium revenues are expected to stoke growth of the Pictures and Financial Services segment, respectively. Expanding image sensors and demand for mobile products should boost the growth prospects of Sony’s Semiconductors segment.
Further, Sony’s consistent efforts on cost-saving initiatives, lower exposure in low-profit geographic regions and reduction in advertising & promotion expenses are expected to prove conducive to bottom-line growth in the to-be-reported quarter. This apart, the company’s major restructuring and internal shuffle efforts are also expected to drive profitability in the upcoming results.
Earnings Whispers
Our proven model does not show that Sony is likely to beat estimates in this quarter. This is because a stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or at least 3 (Hold) for this to happen. This is not the case here as you will see below:
Zacks ESP: The company’s Earnings ESP is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Sony carries a Zacks Rank #1, which increases the predictive power of the ESP. However, the company’s ESP of 0.00% makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks That Warrant a Look
Here are some companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter:
EOG Resources, Inc. (EOG - Free Report) has an Earnings ESP of +12.50% and a Zacks Rank of 1. The company is expected to release quarterly numbers around May 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Century Aluminum Company (CENX - Free Report) , with Earnings ESP of +29.41% and a Zacks Rank of 1, is slated to report results on May 3.
Cardtronics PLC has an Earnings ESP of +10.00% and a Zacks Rank of 2. The company is likely to release earnings on May 3.
Investor Alert: Breakthroughs Pending
A medical advance is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating substantial revenue, and even more wondrous products are in the pipeline.
Cures for a variety of deadly diseases are in sight, and so are big potential profits for early investors. Zacks names 5 stocks to buy now.
Click here to see them >>