Sony (SNE) To Report Q3 Earnings: What's In The Offing?
Zacks Investment Research | Jan 30, 2019 12:17AM ET
Sony Corporation (NYSE:SNE) is scheduled to report third-quarter fiscal 2018 financial results before the opening bell on Feb 1. In the last reported quarter, the company delivered a positive earnings surprise of 31.9%.
Let’s find out how things are shaping up prior to the announcement.
Factors at Play
The Japanese electronics giant expects its Game & Network Services segment to have gained from growing game software sales and higher unit sales of PlayStation4 hardware and PlayStationPlus in the fiscal third quarter.
Sony expects its Music segment to benefit from healthy streaming revenues, strong performance of the mobile gaming application Fate/Grand Order and impact from the consolidation of EMI. Notably, in November 2018, Sony Corporation of America — Sony’s wholly owned subsidiary — completed the acquisition of approximately 60% equity interest held by the investor consortium led by Mubadala Investment Company in DH Publishing, L.P., which owned EMI Music Publishing. The transaction almost doubled the number of songs Sony controlled from 2.2 to 4.2 million compositions, making it one of the world’s largest music publishers.
The company expects sales at its Pictures segment to grow on the back of strong theatrical performance of Motion Pictures’ titles released in the current fiscal year. The Imaging Products & Solutions segment is anticipated to report strong sales due to improvement in the product mix of still and video cameras, reflecting the company’s shift to high value-added models. Its Semiconductors segment should benefit from increasing sales of image sensors for mobile products. Furthermore, Sony is ramping up production level of its next-generation 3D camera sensors for 2019 in response to rising interest from several customers, including Apple (NASDAQ:AAPL). However, Sony expects its Mobile Communications segment to generate soft revenues due to decrease in smartphone unit sales mainly in Europe and Japan.
For the fiscal third quarter, the Zacks Consensus Estimate for adjusted earnings per share are pegged at $1.90. The company reported adjusted income of $1.89 per share a year ago.
What Our Model Says
Our proven model does not conclusively show that Sony is likely to beat earnings this quarter as it does not possess one of the two key components. A stock needs to have both a positive Zacks Investment Research
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