Sony Set to Disclose Earnings Ahead of Expectations

Sony Group Corporation (SONY) will unveil its third-quarter fiscal 2024 earnings on February 13.

Stay informed about all quarterly releases: Check out Zacks Earnings Calendar.

Estimated Earnings and Revenue Show Mixed Results

The Zacks Consensus Estimate projects earnings at 29 cents per share, reflecting a decrease of 27.5% compared to the same quarter last year. Expected revenues stand at $24.32 billion, representing a 4.2% decline from the previous year.

Sony has exceeded the Zacks Consensus Estimate for earnings in each of the last four quarters, averaging a surprise of 22.8%. Over the past year, the stock has appreciated 16.6%, while the Audio Video Production industry has seen a modest rise of 14.7%.

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What Drives Sony’s Performance?

The company’s diverse segments—including Game & Network Services (GN&S), Music, Entertainment, Technology & Services (ET&S), and Imaging & Sensing Solutions (I&SS)—are anticipated to bolster Sony’s revenue performance.

The GN&S division is likely benefiting from favorable foreign exchange rates, an increase in network service sales (notably PlayStation Plus), and rising sales of non-first-party titles, even though hardware sales have declined. As of September 2024, PlayStation active users rose 8% year-over-year to 116 million, and total playtime increased by 14% over the same period.

Meanwhile, Sony’s Music segment is experiencing growth driven by digital streaming, boosted revenues from live events, and support from favorable currency rates are expected to enhance sales in this sector. Streaming income from Recorded Music and Music Publishing continues to rise.

The Pictures and I&SS segments are likely benefiting from Crunchyroll’s growing subscriber base and the high demand for image sensors in mobile devices. Additionally, recent acquisitions are expected to contribute positively to revenue growth in the third quarter.

Sony’s Price and Earnings Surprise History

Sony Corporation price-eps-surprise | Sony Corporation Quote

Nonetheless, challenges such as continued struggles in the Financial Services segment and increased competition, along with currency fluctuations, could hinder performance.

Recent Developments

In January 2025, Sony launched XYN, an innovative solution designed to simplify 3D content creation by blending hardware and software. Utilizing Sony’s advanced imaging, sensing, and display technologies, XYN allows creators to capture real-world objects and recreate them in virtual settings. This tool aims to streamline workflows for industries like film, gaming, and design.

Moreover, in December 2024, Sony acquired 12,054,100 new shares of KADOKAWA for ¥50 billion, making it the largest shareholder with a 10% stake. This acquisition builds on shares previously obtained in February 2021.

Additionally, in October 2024, Sony acquired KinaTrax, Inc., enhancing its sports data business with motion capture technology to analyze athletes’ performances, complementing its existing operations through Hawk-Eye Innovations Limited.

Expected Earnings Beat

According to our model, Sony is poised for an earnings beat. The combination of a favorable Earnings ESP and a Zacks Rank of #1 (Strong Buy), #2 (Buy), or #3 (Hold) enhances the chances of a positive earnings report, which applies to Sony in this case.

Earnings ESP: SONY currently holds an Earnings ESP of +4.65%. Discover other stocks with promising earnings through our Earnings ESP Filter.

Zacks Rank: SONY boasts a Zacks Rank of #2. Explore the complete list of Zacks #1 Rank stocks here.

Other Promising Stocks to Consider

Several other stocks offer favorable chances for earnings beats:

Airbnb (ABNB) presents an Earnings ESP of +25.59% and holds a Zacks Rank #3, with fourth-quarter 2024 results due on February 13. The consensus estimates for ABNB earnings and revenues are $0.63 per share and $2.42 billion, respectively. ABNB shares have decreased by 12% over the past year.

Twilio Inc. (TWLO) is also slated to report results on February 13, with an Earnings ESP of +3.28% and a Zacks Rank #1. The expected earnings and revenues for TWLO are $1.02 per share and $1.17 billion, respectively. TWLO shares have surged 102.7% over the last twelve months.

Watsco, Inc. (WSO) has an Earnings ESP of +0.94%, carrying a Zacks Rank #2. WSO is set to report on February 18, anticipating earnings of $2.13 per share and $1.65 billion in revenues. Shares of WSO have gained 13.4% in the past year.

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