HomeMost PopularInvestingHere's How SONY is Placed Just Ahead of Q4 Earnings Release

Here’s How SONY is Placed Just Ahead of Q4 Earnings Release

Actionable Trade Ideas

always free

Sony Group Corporation SONY 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%

Zacks Investment Research
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 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 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 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 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.

Zacks Names “Single Best Pick to Double”

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

It’s an American AI company that’s riding low right now, but it has rounded up clients like BMW, GE, Dell Computer, and Bosch. It has prospects for not just doubling but quadrupling in the year to come. Of course, all our picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.

Free: See Our Top Stock And 4 Runners Up

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Alcon (ALC) : Free Stock Analysis Report

Consolidated Water Co. Ltd. (CWCO) : Free Stock Analysis Report

Mach Natural Resources LP (MNR) : Free Stock Analysis Report

Sony Corporation (SONY) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Swing Trading Ideas and Market Commentary

Need some new swing ideas? Get free weekly swing ideas and market commentary from Jonathan Bernstein here: Swing Trading.

Explore More

Weekly In-Depth Market Analysis and Actionable Trade Ideas

Get institutional-level analysis and trade ideas to take your trading to the next level, sign up for free and become apart of the community.