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SONY's Q4 Earnings and Revenues Beat Estimates, Rise Y/Y
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Sony Group Corporation (SONY - Free Report) reported fourth-quarter fiscal 2022 net income per share (on a GAAP basis) of ¥103.53 per share (78 cents per share), increasing from ¥88.98 reported in the year-ago quarter. The Zacks
Consensus Estimate for earnings was pegged at 56 cents per share. Adjusted net income came in at ¥128.2 billion compared with ¥111.1 billion in the prior-year quarter.
Quarterly total revenues increased 35% year over year to ¥3,063.6 billion ($23,166.6 million). The Zacks Consensus Estimate was pegged at $22,994.7 million. The uptick was due to an increase in revenues in Game & Network Services (G&NS), Music, Pictures, Imaging & Sensing Solutions and Financial Services business segments sales, partially offset by the decline in Entertainment, Technology & Services (ET&S).
Sony Corporation Price, Consensus and EPS Surprise
In the quarter under review, G&NS sales were up 61.3% year over year to ¥1073.2 billion. The segment’s operating income was ¥38.9 billion compared with ¥87.3 billion in the prior-year quarter. In the quarter under review, the company sold 6.3 million units of Play Station 5.
In the fiscal year, sales in the segment were up 33%, increased owing to the positive impact of the forex movement, first-party titles and improving hardware sales. In the fiscal year, the company sold 19.1 million units of Play Station 5.
Music sales increased 18.6% year over year to ¥349.5 billion in the fiscal fourth quarter. Operating income was ¥60.4 billion, up from ¥49.9 billion in the prior-year quarter.
In the fiscal year, sales from the segment were up 24%, owing to higher recorded music and music publishing sales from paid subscription streaming services, partly offset by softness in the anime business for Visual Media & Platform.
Pictures sales jumped 15% year over year to ¥359 billion. Operating income was ¥15.5 billion compared with ¥11 billion a year ago.
In the fiscal year, sales from the segment were up 11%, driven by higher sales for anime streaming services and the positive impact of the acquisition of Bad Wolf and Industrial Media. This was partly offset by lower sales for theatrical films and television licensing.
ET&S sales came in at ¥493.8 billion, down 0.1% year over year. Operating loss was ¥33 billion compared with ¥11.6 billion in the year-ago quarter.
For the fiscal year, sales from the segment were up 6% due to an increase in sales of digital cameras and favorable foreign exchange rates, partly offset by lower television sales.
Imaging & Sensing Solutions sales were up 36.7% year over year to ¥348.8 billion. Operating income was ¥31.7 billion compared with ¥10.7 billion in the prior-year quarter.
For the fiscal year, sales from the segment were up 30% due to an increase in sales of mobile image sensors and favorable forex movement.
Financial Services sales were up 76.4% year over year to ¥493.3 billion. Operating income was ¥33.7 billion compared with ¥47.8 billion in the year-ago quarter.
For the fiscal year, sales from the segment were down 5%, which reflects a decline in revenues at Sony Life and a fall in net gains on investments in separate accounts.
All Other sales were down 9.6% to ¥22.5 billion in the fiscal fourth quarter. Operating income was ¥0.1 billion against the operating loss of ¥3 billion in the year-ago quarter.
Other Details
For the quarter under review, total expenses were ¥2,940.7 billion, up 38.2% year over year. Operating income was ¥128.5 billion, down 7%.
Cash Flow & Liquidity
For fiscal 2022, Sony generated ¥415.5 billion of cash from operating activities compared with ¥813.3 billion in the prior fiscal year. Free cash outflow came in at ¥616.6 billion compared with a free cash flow of ¥102.1 billion in the prior fiscal year.
As of Mar 31, 2023, the company had ¥2,049.6 billion in cash and cash equivalents with ¥1,203.6 billion of long-term debt.
FY23 Outlook
Sony has provided the outlook for the fiscal year ending Mar 31, 2024. It now expects sales of ¥11,500 billion, down 0.3% year over year. The top-line performance is likely to be affected by ET&S and Financial Services segment sales, partly offset by improvement in GN&S, Music, Pictures and I&SS segment sales.
Net income is estimated to be ¥840 billion, declining 10% year over year. Operating income is projected to be ¥1,170 billion, suggesting a decline of 3% year over year.
Operating cash flow is now expected to be ¥1250 billion, up 201% from the prior fiscal year.
The Zacks Consensus Estimate for Arista Networks’ 2023 earnings has decreased 0.2% in the past 60 days to $5.78 per share. The long-term earnings growth rate is anticipated to be 14.2%.
Arista Networks’ earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 14.2%. Shares of ANET have increased 29% in the past year.
The Zacks Consensus Estimate for Asure Software’s 2023 earnings has increased 25% in the past 60 days to 35 cents per share. The long-term earnings growth rate is anticipated to be 25%.
Asure Software’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 445.8%. Shares of ASUR have increased 122.4% in the past year.
The Zacks Consensus Estimate for Salesforce’s 2023 earnings has increased 21.5% in the past 60 days to $7.11 per share. The long-term earnings growth rate is anticipated to be 16.8%.
Salesforce’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average surprise being 15.6%. Shares of the company have increased 3.2% in the past year.
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SONY's Q4 Earnings and Revenues Beat Estimates, Rise Y/Y
Sony Group Corporation (SONY - Free Report) reported fourth-quarter fiscal 2022 net income per share (on a GAAP basis) of ¥103.53 per share (78 cents per share), increasing from ¥88.98 reported in the year-ago quarter. The Zacks
Consensus Estimate for earnings was pegged at 56 cents per share.
Adjusted net income came in at ¥128.2 billion compared with ¥111.1 billion in the prior-year quarter.
Quarterly total revenues increased 35% year over year to ¥3,063.6 billion ($23,166.6 million). The Zacks Consensus Estimate was pegged at $22,994.7 million. The uptick was due to an increase in revenues in Game & Network Services (G&NS), Music, Pictures, Imaging & Sensing Solutions and Financial Services business segments sales, partially offset by the decline in Entertainment, Technology & Services (ET&S).
Sony Corporation Price, Consensus and EPS Surprise
Sony Corporation price-consensus-eps-surprise-chart | Sony Corporation Quote
Segment Results
In the quarter under review, G&NS sales were up 61.3% year over year to ¥1073.2 billion. The segment’s operating income was ¥38.9 billion compared with ¥87.3 billion in the prior-year quarter. In the quarter under review, the company sold 6.3 million units of Play Station 5.
In the fiscal year, sales in the segment were up 33%, increased owing to the positive impact of the forex movement, first-party titles and improving hardware sales. In the fiscal year, the company sold 19.1 million units of Play Station 5.
Music sales increased 18.6% year over year to ¥349.5 billion in the fiscal fourth quarter. Operating income was ¥60.4 billion, up from ¥49.9 billion in the prior-year quarter.
In the fiscal year, sales from the segment were up 24%, owing to higher recorded music and music publishing sales from paid subscription streaming services, partly offset by softness in the anime business for Visual Media & Platform.
Pictures sales jumped 15% year over year to ¥359 billion. Operating income was ¥15.5 billion compared with ¥11 billion a year ago.
In the fiscal year, sales from the segment were up 11%, driven by higher sales for anime streaming services and the positive impact of the acquisition of Bad Wolf and Industrial Media. This was partly offset by lower sales for theatrical films and television licensing.
ET&S sales came in at ¥493.8 billion, down 0.1% year over year. Operating loss was ¥33 billion compared with ¥11.6 billion in the year-ago quarter.
For the fiscal year, sales from the segment were up 6% due to an increase in sales of digital cameras and favorable foreign exchange rates, partly offset by lower television sales.
Imaging & Sensing Solutions sales were up 36.7% year over year to ¥348.8 billion. Operating income was ¥31.7 billion compared with ¥10.7 billion in the prior-year quarter.
For the fiscal year, sales from the segment were up 30% due to an increase in sales of mobile image sensors and favorable forex movement.
Financial Services sales were up 76.4% year over year to ¥493.3 billion. Operating income was ¥33.7 billion compared with ¥47.8 billion in the year-ago quarter.
For the fiscal year, sales from the segment were down 5%, which reflects a decline in revenues at Sony Life and a fall in net gains on investments in separate accounts.
All Other sales were down 9.6% to ¥22.5 billion in the fiscal fourth quarter. Operating income was ¥0.1 billion against the operating loss of ¥3 billion in the year-ago quarter.
Other Details
For the quarter under review, total expenses were ¥2,940.7 billion, up 38.2% year over year. Operating income was ¥128.5 billion, down 7%.
Cash Flow & Liquidity
For fiscal 2022, Sony generated ¥415.5 billion of cash from operating activities compared with ¥813.3 billion in the prior fiscal year. Free cash outflow came in at ¥616.6 billion compared with a free cash flow of ¥102.1 billion in the prior fiscal year.
As of Mar 31, 2023, the company had ¥2,049.6 billion in cash and cash equivalents with ¥1,203.6 billion of long-term debt.
FY23 Outlook
Sony has provided the outlook for the fiscal year ending Mar 31, 2024. It now expects sales of ¥11,500 billion, down 0.3% year over year. The top-line performance is likely to be affected by ET&S and Financial Services segment sales, partly offset by improvement in GN&S, Music, Pictures and I&SS segment sales.
Net income is estimated to be ¥840 billion, declining 10% year over year. Operating income is projected to be ¥1,170 billion, suggesting a decline of 3% year over year.
Operating cash flow is now expected to be ¥1250 billion, up 201% from the prior fiscal year.
Zacks Rank & Stocks to Consider
Sony currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology space are Arista Networks (ANET - Free Report) , Asure Software (ASUR - Free Report) and Salesforce (CRM - Free Report) . Asure Software and Salesforce currently sport a Zacks Rank #1 (Strong Buy), whereas Arista Networks carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Arista Networks’ 2023 earnings has decreased 0.2% in the past 60 days to $5.78 per share. The long-term earnings growth rate is anticipated to be 14.2%.
Arista Networks’ earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 14.2%. Shares of ANET have increased 29% in the past year.
The Zacks Consensus Estimate for Asure Software’s 2023 earnings has increased 25% in the past 60 days to 35 cents per share. The long-term earnings growth rate is anticipated to be 25%.
Asure Software’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 445.8%. Shares of ASUR have increased 122.4% in the past year.
The Zacks Consensus Estimate for Salesforce’s 2023 earnings has increased 21.5% in the past 60 days to $7.11 per share. The long-term earnings growth rate is anticipated to be 16.8%.
Salesforce’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average surprise being 15.6%. Shares of the company have increased 3.2% in the past year.