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Here's What to Expect Ahead of Sony's (SONY) Q1 Earnings
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Sony Group Corporation (SONY - Free Report) is scheduled to report first-quarter fiscal 2022 results on Jul 29.
The Zacks Consensus Estimate for earnings is pegged at $1.15 per share, indicating a decrease of 25.8% on a year-over-year basis. The consensus mark for revenues stands at $19.36 billion, suggesting a decline of 6.1% from the prior-year quarter’s levels.
The company surpassed the Zacks Consensus Estimate in three of the last four quarters and missed the same in the remaining quarter. It has a trailing four-quarter earnings surprise of 20.1%, on average. In the past year, shares of the company have lost 14.2% of their value compared with the industry’s decline of 16.5%.
Image Source: Zacks Investment Research
Factors to Note
The Japan-based company is likely to have gained from momentum seen in the Music, Pictures, Imaging & Sensing Solutions, and Pictures segments, along with improving sales at the Game & Network Services Segment.
Higher hardware sales, especially PlayStation 5, might have positively impacted the company’s Game & Network Services segment in the quarter to be reported. Also increases in the sale of non-first-party titles sales, including add-on content, may have acted as a tailwind.
The Music segment is likely to have benefited from a rise in sales of recorded music and visual media and platform. Increased revenues from paid subscription streaming and advertising-supported streaming services might have favored top line performance.
Improvement in sales of televisions and cameras owing to change in the product mix may have favored the Electronics Products & Solutions Segment in the to-be-reported quarter.
The Imaging & Sensing Solutions segment is expected to have gained from higher sales of image sensors for mobile products.
The Pictures segment is likely to have benefited from a rise in sales for media networks resulting from the Crunchyroll acquisition and television productions.
However, protracted supply chain troubles along with uncertainty prevailing over global macroeconomic conditions and inflationary pressure may have weighed on the to-be-reported quarter’s performance.
Recent Developments
In July 2022, Sony’s subsidiary, Sony Interactive Entertainment (“SIE”), completed the buyout of video game developer — Bungie — for $3.6 billion. With the acquisition of Bungie, SIE will gain first-hand access to the video game developer’s broad library of live game services and technology expertise of nearly three decades, thereby augmenting SIE’s reach to avid gamers globally. The landmark consolidation deal will see Bungie join Sony’s PlayStation family. Thanks to Bungie’s state-of-the-art knowledge in multi-platform development, Sony is now well-positioned to compete with Activision’s first-person shooter video game series — Call of Duty. The deal will complement the long-term vision of both entities by fortifying the Japan-based conglomerate’s network of in-house gaming studios to tackle cash-rich rivals and empower Bungie to become a global multimedia entertainment company.
In June 2022, Sony launched a new gaming gear brand — INZONE — specially designed for hardcore PC and PlayStation gamers. INZONE features two gaming monitors — the INZONE M9 and INZONE M3 — priced at $899.99 and $529.99, respectively. The INZONE M9 features a 4K resolution and DisplayHDR 600 certification with a 144Hz refresh rate, while the INZONE M3 has a full HD resolution and DisplayHDR 400 certification with a 240Hz refresh rate.
Sony launched two new premium Walkman models, the NW-WM1ZM2 and NW-WM1AM2. Both the devices are Wi-Fi compatible and powered by Android 11, allowing users to download and enjoy music for up to 40 hours (premium models) from different artists worldwide, per company estimates.
What Our Model Says
Our proven model does 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.
Sony has an Earnings ESP of +4.78% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks to Consider
Here are some other stocks you may consider, as our model shows that these too have the right combination of elements to beat earnings this season.
The Zacks Consensus Estimate for Occidental Petroleum’s to-be-reported quarter’s earnings and revenues is pegged at $2.92 per share and $9.7 billion, respectively. Occidental Petroleum delivered an average surprise of 26.2% in the preceding four quarters. Shares of OXY have soared 145.3% in the past year.
Lumen Technologies (LUMN - Free Report) has an Earnings ESP of +0.58% and a Zacks Rank of 1. Lumen Technologies is set to announce quarterly figures on Aug 3.
The Zacks Consensus Estimate for Lumen’s to-be-reported quarter’s earnings and revenues is pegged at 47 cents per share and $4.6 billion, respectively. Lumen surpassed earnings estimates in the preceding four quarters, with the average surprise being 17.6%. Shares of LUMN have lost 16.8% in the past year.
Generac Holdings (GNRC - Free Report) has an Earnings ESP of +0.76% and a Zacks Rank #3 currently. GNRC is slated to release quarterly numbers on Aug 3.
The Zacks Consensus Estimate for GNRC’s to-be-reported quarter’s earnings and revenues is pegged at $2.65 per share and $1.26 billion, respectively. GNRC surpassed earnings estimates in three of the preceding four quarters and missed in the remaining quarter. The average surprise stands at 3.9%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Here's What to Expect Ahead of Sony's (SONY) Q1 Earnings
Sony Group Corporation (SONY - Free Report) is scheduled to report first-quarter fiscal 2022 results on Jul 29.
The Zacks Consensus Estimate for earnings is pegged at $1.15 per share, indicating a decrease of 25.8% on a year-over-year basis. The consensus mark for revenues stands at $19.36 billion, suggesting a decline of 6.1% from the prior-year quarter’s levels.
Sony Corporation Price and EPS Surprise
Sony Corporation price-eps-surprise | Sony Corporation Quote
The company surpassed the Zacks Consensus Estimate in three of the last four quarters and missed the same in the remaining quarter. It has a trailing four-quarter earnings surprise of 20.1%, on average. In the past year, shares of the company have lost 14.2% of their value compared with the industry’s decline of 16.5%.
Image Source: Zacks Investment Research
Factors to Note
The Japan-based company is likely to have gained from momentum seen in the Music, Pictures, Imaging & Sensing Solutions, and Pictures segments, along with improving sales at the Game & Network Services Segment.
Higher hardware sales, especially PlayStation 5, might have positively impacted the company’s Game & Network Services segment in the quarter to be reported. Also increases in the sale of non-first-party titles sales, including add-on content, may have acted as a tailwind.
The Music segment is likely to have benefited from a rise in sales of recorded music and visual media and platform. Increased revenues from paid subscription streaming and advertising-supported streaming services might have favored top line performance.
Improvement in sales of televisions and cameras owing to change in the product mix may have favored the Electronics Products & Solutions Segment in the to-be-reported quarter.
The Imaging & Sensing Solutions segment is expected to have gained from higher sales of image sensors for mobile products.
The Pictures segment is likely to have benefited from a rise in sales for media networks resulting from the Crunchyroll acquisition and television productions.
However, protracted supply chain troubles along with uncertainty prevailing over global macroeconomic conditions and inflationary pressure may have weighed on the to-be-reported quarter’s performance.
Recent Developments
In July 2022, Sony’s subsidiary, Sony Interactive Entertainment (“SIE”), completed the buyout of video game developer — Bungie — for $3.6 billion. With the acquisition of Bungie, SIE will gain first-hand access to the video game developer’s broad library of live game services and technology expertise of nearly three decades, thereby augmenting SIE’s reach to avid gamers globally. The landmark consolidation deal will see Bungie join Sony’s PlayStation family. Thanks to Bungie’s state-of-the-art knowledge in multi-platform development, Sony is now well-positioned to compete with Activision’s first-person shooter video game series — Call of Duty. The deal will complement the long-term vision of both entities by fortifying the Japan-based conglomerate’s network of in-house gaming studios to tackle cash-rich rivals and empower Bungie to become a global multimedia entertainment company.
In June 2022, Sony launched a new gaming gear brand — INZONE — specially designed for hardcore PC and PlayStation gamers. INZONE features two gaming monitors — the INZONE M9 and INZONE M3 — priced at $899.99 and $529.99, respectively. The INZONE M9 features a 4K resolution and DisplayHDR 600 certification with a 144Hz refresh rate, while the INZONE M3 has a full HD resolution and DisplayHDR 400 certification with a 240Hz refresh rate.
Sony launched two new premium Walkman models, the NW-WM1ZM2 and NW-WM1AM2. Both the devices are Wi-Fi compatible and powered by Android 11, allowing users to download and enjoy music for up to 40 hours (premium models) from different artists worldwide, per company estimates.
What Our Model Says
Our proven model does 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.
Sony has an Earnings ESP of +4.78% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks to Consider
Here are some other stocks you may consider, as our model shows that these too have the right combination of elements to beat earnings this season.
Occidental Petroleum Corporation (OXY - Free Report) has an Earnings ESP of +3.78% and a Zacks Rank #2 currently. Occidental Petroleum is scheduled to report earnings results on Aug 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Occidental Petroleum’s to-be-reported quarter’s earnings and revenues is pegged at $2.92 per share and $9.7 billion, respectively. Occidental Petroleum delivered an average surprise of 26.2% in the preceding four quarters. Shares of OXY have soared 145.3% in the past year.
Lumen Technologies (LUMN - Free Report) has an Earnings ESP of +0.58% and a Zacks Rank of 1. Lumen Technologies is set to announce quarterly figures on Aug 3.
The Zacks Consensus Estimate for Lumen’s to-be-reported quarter’s earnings and revenues is pegged at 47 cents per share and $4.6 billion, respectively. Lumen surpassed earnings estimates in the preceding four quarters, with the average surprise being 17.6%. Shares of LUMN have lost 16.8% in the past year.
Generac Holdings (GNRC - Free Report) has an Earnings ESP of +0.76% and a Zacks Rank #3 currently. GNRC is slated to release quarterly numbers on Aug 3.
The Zacks Consensus Estimate for GNRC’s to-be-reported quarter’s earnings and revenues is pegged at $2.65 per share and $1.26 billion, respectively. GNRC surpassed earnings estimates in three of the preceding four quarters and missed in the remaining quarter. The average surprise stands at 3.9%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.