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Sony (SNE) to Report Q3 Earnings: What's in the Offing?

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Sony Corporation is scheduled to report third-quarter fiscal 2020 results on Feb 3, before the opening bell. In the last reported quarter, the company delivered an earnings surprise of 285.6%. The bottom line surpassed the Zacks Consensus Estimate by $2.57.

The Japan-based company is expected to have recorded higher aggregate revenues year over year in the fiscal third quarter. It has been taking actions to adapt flexibly to changes in the operating environment while increasing focus on managing each of the businesses.

Factors at Play

During the quarter under review, Sony Imaging Products & Solutions Inc. acquired Nevion AS, a leading provider of virtualized media production solutions, to enhance its portfolio, providing end-to-end IP and cloud-based production solutions for broadcasting and other applications.

Also, Sony launched a new project for drones in the field of artificial intelligence robotics. The company launched the ‘Airpeak’ brand to further develop drone technology. The development reflects Sony’s focus on 3R technologies (Reality, Real-time and Remote) in the drone area.

The Game & Network Services segment has been benefiting from an increase in game software sales and PlayStation Plus subscriptions. Sony launched its next-generation gaming console, PlayStation 5. These notable developments are likely to have had a positive impact on the company’s top line.

For the December quarter, the Zacks Consensus Estimate for consolidated revenues is pegged at $24,488 million, indicating growth of 8.1% from the year-ago quarter’s reported figure. The consensus estimate for adjusted earnings per share is pegged at 80 cents, which suggests a decline of 52.4%.

What Our Model Says

Our proven model predicts an earnings beat for Sony this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. And that’s exactly the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: Sony’s Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is +39.62% as the former is pegged at $1.11 and the latter at 80 cents.

Sony Corporation Price and EPS Surprise

Sony Corporation Price and EPS Surprise

Sony Corporation price-eps-surprise | Sony Corporation Quote

Zacks Rank: Sony currently carries a Zacks Rank #3.

Other Stocks to Consider

Here are some other companies that you may want to consider as our model shows that these too have the right combination of elements to post an earnings beat in their upcoming release:

Littelfuse, Inc. (LFUS - Free Report) is slated to release fourth-quarter 2020 results on Feb 3. It has an Earnings ESP of +5.02% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Suncor Energy Inc. (SU - Free Report) is scheduled to release fourth-quarter 2020 results on Feb 3. The company has an Earnings ESP of +40.43% and carries a Zacks Rank #2.

CNH Industrial N.V. (CNHI - Free Report) has an Earnings ESP of +27.57% and a Zacks Rank of 2. The company is set to report fourth-quarter 2020 results on Feb 3.

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