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Sony (SONY) to Report Q1 Earnings: What's in the Cards?

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Sony Group Corporation (SONY - Free Report) is scheduled to report first-quarter fiscal 2021 results on Aug 4, before the opening bell. In the last reported quarter, the company delivered an earnings surprise of 118.9%. It pulled off a trailing four-quarter earnings surprise of 232.5%, on average.

This Japan-based company is expected to have recorded year-over-year higher aggregate revenues in the fiscal first quarter. Its performance is likely to have been primarily driven by strong momentum in the Game & Network Services (G&NS) and Financial Services businesses.

During the quarter, Sony set up a new company, SynecO, Inc., to support enterprises that are focused on Synecoculture and other environmental technologies associated with augmented ecosystems. Synecoculture is a trademark of the Sony Group. It is an approach by Sony Computer Science Laboratories in which ecosystems are artificially created for cultivating a variety of crops while enriching local biodiversity.

Sony Music Entertainment, a wholly owned subsidiary of Sony, completed the acquisition of 100% of the shares and related assets of certain subsidiaries of Kobalt Music Group Limited. Such developments are likely to have had a positive impact on Sony’s top line in the quarter.

The G&NS segment is likely to have benefited from an increase in game software sales including add-on content and hardware sales related to the PlayStation 5. The Financial Services unit is expected to have gained from increase in revenues at Sony Life.

For the June quarter, the Zacks Consensus Estimate for revenues is pegged at $21,291 million, which indicates growth of 16.3% from the year-ago quarter’s reported figure. The consensus estimate for adjusted earnings per share is pegged at $1.04, which suggests a decline of 40.2%.

What Our Model Says

Our proven model doesn’t conclusively predict 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. But that’s not 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 -1.45% as the former is pegged at $1.02 and the latter at $1.04.

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.

Stocks to Consider

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:

Olympic Steel, Inc. (ZEUS - Free Report) is slated to release second-quarter 2021 results on Aug 5. It has an Earnings ESP of +31.84 % and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Penn National Gaming, Inc. (PENN - Free Report) is scheduled to release second-quarter 2021 results on Aug 5. The company has an Earnings ESP of +26.32 % and a Zacks Rank #1.

Telephone and Data Systems, Inc. (TDS - Free Report) has an Earnings ESP of +6.33 % and a Zacks Rank #1. The company is set to report second-quarter 2021 results on Aug 5.

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