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Here's How SONY is Placed Just Ahead of Q4 Earnings Release
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Sony Group Corporation (SONY - Free Report) is scheduled to report fourth-quarter fiscal 2023 results on May 14.
The Zacks Consensus Estimate for earnings is pegged at 83 cents per share, indicating an increase of 6.4% from the year-ago levels. The consensus estimate for revenues is pegged at $18.97 billion, suggesting a decline of 18.1% from the prior-year actuals.
The company’s earnings surpassed the Zacks Consensus Estimate in three of the last four quarters, while missing in the remaining quarter, the average surprise being 22.1%.
In the past year, the stock has lost 16.1% of its value compared with the sub-industry’s decline of 15.5%
Image Source: Zacks Investment Research
Factors to Note
SONY’s performance is likely to have been affected by lower sale of hardware, resulting from lower unit sales. Management now expects to sell about 21 million units of its PlayStation 5 (PS5) in fiscal 2023, down from 25 million units guided earlier. Moreover, promotional activity associated with the sale of hardware is likely to have weighed on the Games & Network (G&NS) segment’s OIBDA performance.
Owing to lower hardware sales, the company has lowered its overall guidance for fiscal 2023 revenues. It now expects sales of ¥12,300 billion compared with the earlier guidance of ¥12,400 billion.
Lower sales of televisions are likely to have weighed on the Electronics Products & Solutions segment in the quarter under discussion. Increasing costs and uncertainty prevailing over global macroeconomic conditions are likely to have been additional headwinds.
Continued strength in the Music and Pictures segments is likely to have provided some cushioning to the top-line performance. The Music segment is benefiting from a rise in sales of recorded music and improved revenues from paid subscription streaming.
The Pictures segment is expected to have gained from increasing television and digital streaming licensing revenues as well as higher revenues for Crunchyroll due to paid subscriber growth.
Financial Services’ revenue forecast was revised upward due to an increase in net gains on investment in separate accounts at Sony Life.
The Imaging & Sensing Solutions segment is likely to have been aided by favorable foreign exchange movement.
Our proven model predicts 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 +2.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks to Consider
Here are a few other stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season.
The Zacks Consensus Estimate for MNR’s to-be-reported quarter’s earnings and revenues is pegged at 85 cents per share and $262.8 million, respectively. Shares of MNR have risen 9.7% in the past year.
Alcon Inc. (ALC - Free Report) has an Earnings ESP of +1.88% and presently carries a Zacks Rank #2. ALC is slated to release quarterly numbers on May 14.
The Zacks Consensus Estimate for ALC’s to-be-reported quarter’s earnings and revenues is pegged at 72 cents per share and $2.46 billion, respectively. Shares of ALC have lost 0.3% of their value in the past year.
Consolidated Water Co. Ltd. (CWCO - Free Report) has an Earnings ESP of +2.56% and currently carries a Zacks Rank #3. CWCO is scheduled to report quarterly earnings on May 16.
The Zacks Consensus Estimate for CWCO’s to-be-reported quarter’s earnings and revenues is pegged at 39 cents per share and $38.7 million, respectively. Shares of CWCO have surged 63.7% in the past year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Here's How SONY is Placed Just Ahead of Q4 Earnings Release
Sony Group Corporation (SONY - Free Report) is scheduled to report fourth-quarter fiscal 2023 results on May 14.
The Zacks Consensus Estimate for earnings is pegged at 83 cents per share, indicating an increase of 6.4% from the year-ago levels. The consensus estimate for revenues is pegged at $18.97 billion, suggesting a decline of 18.1% from the prior-year actuals.
The company’s earnings surpassed the Zacks Consensus Estimate in three of the last four quarters, while missing in the remaining quarter, the average surprise being 22.1%.
In the past year, the stock has lost 16.1% of its value compared with the sub-industry’s decline of 15.5%
Image Source: Zacks Investment Research
Factors to Note
SONY’s performance is likely to have been affected by lower sale of hardware, resulting from lower unit sales. Management now expects to sell about 21 million units of its PlayStation 5 (PS5) in fiscal 2023, down from 25 million units guided earlier. Moreover, promotional activity associated with the sale of hardware is likely to have weighed on the Games & Network (G&NS) segment’s OIBDA performance.
Owing to lower hardware sales, the company has lowered its overall guidance for fiscal 2023 revenues. It now expects sales of ¥12,300 billion compared with the earlier guidance of ¥12,400 billion.
Lower sales of televisions are likely to have weighed on the Electronics Products & Solutions segment in the quarter under discussion. Increasing costs and uncertainty prevailing over global macroeconomic conditions are likely to have been additional headwinds.
Continued strength in the Music and Pictures segments is likely to have provided some cushioning to the top-line performance. The Music segment is benefiting from a rise in sales of recorded music and improved revenues from paid subscription streaming.
The Pictures segment is expected to have gained from increasing television and digital streaming licensing revenues as well as higher revenues for Crunchyroll due to paid subscriber growth.
Financial Services’ revenue forecast was revised upward due to an increase in net gains on investment in separate accounts at Sony Life.
The Imaging & Sensing Solutions segment is likely to have been aided by favorable foreign exchange movement.
Sony Corporation Price and EPS Surprise
Sony Corporation price-eps-surprise | Sony Corporation Quote
What Our Model Says
Our proven model predicts 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 +2.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks to Consider
Here are a few other stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season.
Mach Natural Resources LP (MNR - Free Report) has an Earnings ESP of +6.51% and currently sports a Zacks Rank of 1. MNR is set to announce quarterly figures on May 13. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for MNR’s to-be-reported quarter’s earnings and revenues is pegged at 85 cents per share and $262.8 million, respectively. Shares of MNR have risen 9.7% in the past year.
Alcon Inc. (ALC - Free Report) has an Earnings ESP of +1.88% and presently carries a Zacks Rank #2. ALC is slated to release quarterly numbers on May 14.
The Zacks Consensus Estimate for ALC’s to-be-reported quarter’s earnings and revenues is pegged at 72 cents per share and $2.46 billion, respectively. Shares of ALC have lost 0.3% of their value in the past year.
Consolidated Water Co. Ltd. (CWCO - Free Report) has an Earnings ESP of +2.56% and currently carries a Zacks Rank #3. CWCO is scheduled to report quarterly earnings on May 16.
The Zacks Consensus Estimate for CWCO’s to-be-reported quarter’s earnings and revenues is pegged at 39 cents per share and $38.7 million, respectively. Shares of CWCO have surged 63.7% in the past year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.