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SONY to Invest 800 Billion Yen in Western Japan: Key Takeaways
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Sony Group Corporation (SONY - Free Report) is planning to invest approximately 800 billion yen ($5.83 billion) to construct a factory in Western Japan, per a report from Reuters.
Located in Kumamoto Prefecture, the factory will produce smartphone image sensors aimed at tapping the rising demand for smart chips after the pandemic-induced slowdown.
The company intends to carefully assess the timing of the development and the amount of investment owing to rising concerns of a global economic slowdown. The company plans to fully launch the factory by 2025, added the report.
Sony plans to use source logic chips for image sensors from the Taiwan Semiconductor Manufacturing Company’s factory in Kumamoto.
Per a report from MarketsAndMarkets, the image sensor market is estimated at $26.1 billion in 2022 and is projected to reach $38.6 billion by 2027, registering a CAGR of 8.1%. The industry is likely to benefit from the increasing demand for multiple cameras in a smartphone and the ongoing digitalization, added the report.
Previously, Sony announced that it is planning to roll out its wearable motion capture sensors in Japan in January 2023 at a price of ¥49,500 (approximately $359). The product can be purchased from Sony Store, with pre-order sales scheduled to start in mid-December.
The company also collaborated with Microsoft to create solutions that make AI (artificial intelligence)-powered smart cameras and video analytics easier to access for their mutual customers.
Sony is a well-known player in the video game space, with its PlayStation being one of the most sought-after gaming consoles in the world. The company’s Games & Network Services segment is one of the largest contributors to the top line.
The company has raised its guidance for the fiscal year ending Mar 31, 2023, from ¥11,500 billion to ¥11,600 billion. The top-line performance is likely to be driven by an improvement in GN&S, Music, Pictures and ET&S segment sales.
Sony currently has a Zacks Rank #3 (Hold). The stock has lost 35.6% in the past year compared with the sub-industry’s decline of 35%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the broader consumer discretionary sector are RCI Hospitality (RICK - Free Report) , Arista Networks (ANET - Free Report) and Lululemon Athletica (LULU - Free Report) . Arista currently sports a Zacks Rank #1 (Strong Buy), whereas RCI and Lululemon presently hold a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks.
The Zacks Consensus Estimate for RCI Hospitality’s 2023 earnings is pegged at $5.95 per share, up 2.6% in the past 60 days. The long-term earnings growth rate is anticipated to be 12%.
RCI Hospitality’s earnings beat the Zacks Consensus Estimate in three of the last four quarters, the average being 6.2%. Shares of RICK have increased 30.1% in the past year.
The Zacks Consensus Estimate for Arista Networks 2022 earnings is pegged at $4.37 per share, up 8.2% in the past 60 days. The long-term earnings growth rate is anticipated to be 17.5%.
Arista Networks’ earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 12.7%. Shares of ANET have declined 0.9% in the past year.
The Zacks Consensus Estimate for Lululemon’s 2023 earnings is pegged at $9.93 per share, up 0.5% in the past 60 days. The long-term earnings growth rate is anticipated to be 20%.
Lululemon’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 6.7%. Shares of LULU have decreased 22.4% in the past year.
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SONY to Invest 800 Billion Yen in Western Japan: Key Takeaways
Sony Group Corporation (SONY - Free Report) is planning to invest approximately 800 billion yen ($5.83 billion) to construct a factory in Western Japan, per a report from Reuters.
Located in Kumamoto Prefecture, the factory will produce smartphone image sensors aimed at tapping the rising demand for smart chips after the pandemic-induced slowdown.
The company intends to carefully assess the timing of the development and the amount of investment owing to rising concerns of a global economic slowdown. The company plans to fully launch the factory by 2025, added the report.
Sony Corporation Price and Consensus
Sony Corporation price-consensus-chart | Sony Corporation Quote
Sony plans to use source logic chips for image sensors from the Taiwan Semiconductor Manufacturing Company’s factory in Kumamoto.
Per a report from MarketsAndMarkets, the image sensor market is estimated at $26.1 billion in 2022 and is projected to reach $38.6 billion by 2027, registering a CAGR of 8.1%. The industry is likely to benefit from the increasing demand for multiple cameras in a smartphone and the ongoing digitalization, added the report.
Previously, Sony announced that it is planning to roll out its wearable motion capture sensors in Japan in January 2023 at a price of ¥49,500 (approximately $359). The product can be purchased from Sony Store, with pre-order sales scheduled to start in mid-December.
The company also collaborated with Microsoft to create solutions that make AI (artificial intelligence)-powered smart cameras and video analytics easier to access for their mutual customers.
Sony is a well-known player in the video game space, with its PlayStation being one of the most sought-after gaming consoles in the world. The company’s Games & Network Services segment is one of the largest contributors to the top line.
The company has raised its guidance for the fiscal year ending Mar 31, 2023, from ¥11,500 billion to ¥11,600 billion. The top-line performance is likely to be driven by an improvement in GN&S, Music, Pictures and ET&S segment sales.
Sony currently has a Zacks Rank #3 (Hold). The stock has lost 35.6% in the past year compared with the sub-industry’s decline of 35%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the broader consumer discretionary sector are RCI Hospitality (RICK - Free Report) , Arista Networks (ANET - Free Report) and Lululemon Athletica (LULU - Free Report) . Arista currently sports a Zacks Rank #1 (Strong Buy), whereas RCI and Lululemon presently hold a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks.
The Zacks Consensus Estimate for RCI Hospitality’s 2023 earnings is pegged at $5.95 per share, up 2.6% in the past 60 days. The long-term earnings growth rate is anticipated to be 12%.
RCI Hospitality’s earnings beat the Zacks Consensus Estimate in three of the last four quarters, the average being 6.2%. Shares of RICK have increased 30.1% in the past year.
The Zacks Consensus Estimate for Arista Networks 2022 earnings is pegged at $4.37 per share, up 8.2% in the past 60 days. The long-term earnings growth rate is anticipated to be 17.5%.
Arista Networks’ earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 12.7%. Shares of ANET have declined 0.9% in the past year.
The Zacks Consensus Estimate for Lululemon’s 2023 earnings is pegged at $9.93 per share, up 0.5% in the past 60 days. The long-term earnings growth rate is anticipated to be 20%.
Lululemon’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 6.7%. Shares of LULU have decreased 22.4% in the past year.