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SONY Gears Up to Report Q2 Earnings: Here's What to Expect
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Sony Group Corporation (SONY - Free Report) is scheduled to report second-quarter fiscal 2022 results on Nov 1.
The Zacks Consensus Estimate for earnings is pegged at $1.10 per share, indicating a decrease of 29% on a year-over-year basis. The consensus mark for revenues stands at $21.17 billion, suggesting a decline of 1.7% 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 12.2%, on average. In the past year, shares of the company have lost 40.6% of their value compared with the industry’s decline of 40.3%.
Image Source: Zacks Investment Research
Factors to Note
The Japan-based company is likely to have gained from momentum seen in the Music and Pictures segments.
The Music segment is likely to have benefited from a rise in sales of recorded music and increased revenues from paid subscription streaming. Higher revenues for live performances and merchandise sales in recorded music may have favored the top line. However, a decrease in sales in the anime business may have acted as a headwind.
The Pictures segment is likely to have benefited from a rise in sales for media networks resulting from the Crunchyroll acquisition and television productions. Increased series deliveries in television productions, higher television licensing and home entertainment revenues are also likely to have acted as tailwinds
However, weakness in Game & Network Services continues to be a concern. The segment is grappling with a decline in sales of non-first-party titles, including add-on content and weak sales of first-party titles. In the first quarter of fiscal 2022, the segment’s sales were down 2% year over year to ¥604.1 billion.
The segment’s revenues are likely to have been affected by lower software sales. Operating income for the segment is likely to have been affected by a decrease in software sales and higher expenses associated with the acquisition of Bungie. Nonetheless, the company continues to expect 18-million-unit sales for its PlayStation 5 for fiscal 2022.
Also, 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.
Sales of televisions and cameras are likely to have been affected by rising inflation, geopolitical turmoil in Europe and the reimposition of lockdowns in China. This may affect the Electronics Products & Solutions segment in the to-be-reported quarter.
Recent Developments
In October, SONY announced that it had established its earlier announced joint venture with Honda Motor Co., Ltd — Sony Honda Mobility Inc. Both the companies had signed a joint venture agreement to establish Sony Honda Mobility to build high-value-added electric vehicles (EVs) in June 2022. Through Sony Honda Mobility, SONY is looking to deliver EVs to North America at the beginning of spring 2026. The cars will be delivered in Japan in the second half of 2026. The mobility venture will be taking pre-orders for the first product in the first half of 2025, with sales to be executed before the end of 2025.
In August, SONY announced an agreement to acquire Savage Game Studios for an undisclosed amount to further bolster its mobile gaming efforts. Post the acquisition, Savage Studios will join the newly created PlayStation Studios’ mobile division. This division is involved in the development of high-quality, unique mobile games that adhere to PlayStation Studios' high standards while offering customers new gaming experiences.
In August, SONY announced that it is raising the price of its PS5 console in select markets across Europe, the Middle East, Africa, Asia-Pacific, Latin America and Canada. The current increase in price is due to a steep rise in inflation and the depreciation of the yen against the dollar. Further, the rise in global costs and semiconductor shortages may have hampered production.
Our proven model does not 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.
Sony has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some stocks you may consider, as our model shows that these have the right combination of elements to beat on earnings this season.
The Zacks Consensus Estimate for Stellar Bancorp’s to-be-reported quarter’s earnings and revenues is pegged at 88 cents per share and $56.4 million, respectively. Shares of STEL have gained 9.8% in the past year.
Fortinet (FTNT - Free Report) has an Earnings ESP of +0.92% and presently carries a Zacks Rank #2. Fortinet is slated to release quarterly numbers on Nov 2.
The Zacks Consensus Estimate for Fortinet’s to-be-reported quarter’s earnings and revenues is pegged at 27 cents per share and $1.12 billion, respectively. Shares of FTNT have lost 12.9% in the past year.
Apple (AAPL - Free Report) has an Earnings ESP of +0.89% and currently carries a Zacks Rank #3. Apple is scheduled to report earnings on Oct 27.
The Zacks Consensus Estimate for Apple’s to-be-reported quarter’s earnings and revenues is pegged at $1.26 per share and $88.5 billion, respectively. Apple surpassed earnings estimates in the preceding four quarters, delivering an average surprise of 5.7%. Shares of AAPL have gained 2.4% in the past year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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SONY Gears Up to Report Q2 Earnings: Here's What to Expect
Sony Group Corporation (SONY - Free Report) is scheduled to report second-quarter fiscal 2022 results on Nov 1.
The Zacks Consensus Estimate for earnings is pegged at $1.10 per share, indicating a decrease of 29% on a year-over-year basis. The consensus mark for revenues stands at $21.17 billion, suggesting a decline of 1.7% 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 12.2%, on average. In the past year, shares of the company have lost 40.6% of their value compared with the industry’s decline of 40.3%.
Image Source: Zacks Investment Research
Factors to Note
The Japan-based company is likely to have gained from momentum seen in the Music and Pictures segments.
The Music segment is likely to have benefited from a rise in sales of recorded music and increased revenues from paid subscription streaming. Higher revenues for live performances and merchandise sales in recorded music may have favored the top line. However, a decrease in sales in the anime business may have acted as a headwind.
The Pictures segment is likely to have benefited from a rise in sales for media networks resulting from the Crunchyroll acquisition and television productions. Increased series deliveries in television productions, higher television licensing and home entertainment revenues are also likely to have acted as tailwinds
However, weakness in Game & Network Services continues to be a concern. The segment is grappling with a decline in sales of non-first-party titles, including add-on content and weak sales of first-party titles. In the first quarter of fiscal 2022, the segment’s sales were down 2% year over year to ¥604.1 billion.
The segment’s revenues are likely to have been affected by lower software sales. Operating income for the segment is likely to have been affected by a decrease in software sales and higher expenses associated with the acquisition of Bungie. Nonetheless, the company continues to expect 18-million-unit sales for its PlayStation 5 for fiscal 2022.
Also, 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.
Sales of televisions and cameras are likely to have been affected by rising inflation, geopolitical turmoil in Europe and the reimposition of lockdowns in China. This may affect the Electronics Products & Solutions segment in the to-be-reported quarter.
Recent Developments
In October, SONY announced that it had established its earlier announced joint venture with Honda Motor Co., Ltd — Sony Honda Mobility Inc. Both the companies had signed a joint venture agreement to establish Sony Honda Mobility to build high-value-added electric vehicles (EVs) in June 2022. Through Sony Honda Mobility, SONY is looking to deliver EVs to North America at the beginning of spring 2026. The cars will be delivered in Japan in the second half of 2026. The mobility venture will be taking pre-orders for the first product in the first half of 2025, with sales to be executed before the end of 2025.
In August, SONY announced an agreement to acquire Savage Game Studios for an undisclosed amount to further bolster its mobile gaming efforts. Post the acquisition, Savage Studios will join the newly created PlayStation Studios’ mobile division. This division is involved in the development of high-quality, unique mobile games that adhere to PlayStation Studios' high standards while offering customers new gaming experiences.
In August, SONY announced that it is raising the price of its PS5 console in select markets across Europe, the Middle East, Africa, Asia-Pacific, Latin America and Canada. The current increase in price is due to a steep rise in inflation and the depreciation of the yen against the dollar. Further, the rise in global costs and semiconductor shortages may have hampered production.
Sony Corporation Price and EPS Surprise
Sony Corporation price-eps-surprise | Sony Corporation Quote
What Our Model Says
Our proven model does not 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.
Sony has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some stocks you may consider, as our model shows that these have the right combination of elements to beat on earnings this season.
Stellar Bancorp (STEL - Free Report) has an Earnings ESP of +14.34% and currently has a Zacks Rank #2. Stellar Bancorp is scheduled to report earnings on Oct 28. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Stellar Bancorp’s to-be-reported quarter’s earnings and revenues is pegged at 88 cents per share and $56.4 million, respectively. Shares of STEL have gained 9.8% in the past year.
Fortinet (FTNT - Free Report) has an Earnings ESP of +0.92% and presently carries a Zacks Rank #2. Fortinet is slated to release quarterly numbers on Nov 2.
The Zacks Consensus Estimate for Fortinet’s to-be-reported quarter’s earnings and revenues is pegged at 27 cents per share and $1.12 billion, respectively. Shares of FTNT have lost 12.9% in the past year.
Apple (AAPL - Free Report) has an Earnings ESP of +0.89% and currently carries a Zacks Rank #3. Apple is scheduled to report earnings on Oct 27.
The Zacks Consensus Estimate for Apple’s to-be-reported quarter’s earnings and revenues is pegged at $1.26 per share and $88.5 billion, respectively. Apple surpassed earnings estimates in the preceding four quarters, delivering an average surprise of 5.7%. Shares of AAPL have gained 2.4% in the past year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.