Sony Pictures Entertainment posted first quarter operating incoming of $73M, down over 36% year-on-year on a U.S. dollar basis. Revenues also slipped 7% from $2.32B to $2.17B for the three months ended June 30, 2024, despite the performances of films such as The Garfield Movie and Bad Boys: Ride or Die and growth in streaming subs. Overall, Tokyo-based Sony pointed to a reduced number of theatrical releases and new TV season launches for the financial drops, but noted anime streamer Crunchyroll had swelled ...

Sony reported a 10% jump in operating profit in the fiscal first quarter, beating analyst expectations. Here's how Sony did in the June quarter versus LSEG consensus estimates: Revenue: 3.01 trillion yen ($20.5 billion) versus 2.8 trillion yen expected. That marked a 2% rise from the same period a year ago. Operating profit: 279.11 billion yen versus 275.35 billion yen expected. That was up 10% year-over-year. It comes after the Japanese consumer electronics power house reported a disappointing full-year 20 ...

Muted consumer discretionary spending amid weak global macroeconomic conditions is a concern for the Zacks Audio Video Production industry participants. A highly-promotional environment and stiff competition from importers of comparatively low-priced devices are denting margins. Online accessibility of recording equipment and the availability of distribution channels on the Internet are additional headwinds. Nonetheless, industry participants are concentrating on the premium segment of the branded products ...

Sony (NYSE:SONY) layoffs are in the news Friday as the PlayStation parent company is cutting jobs at video game development studio Bungie. Bungie is the original developer of the Halo series and is currently working on Destiny 2 and its expansions. The latest update has CEO Pete Parsons confirming that 220 of its staff are being cut. That represents roughly 17% of its total workforce. Parsons cites a few reasons why the game development studio is cutting jobs. That includes rising costs of development, chan ...

Many companies have performed stock splits this year as the bull market continues to run. Some notable companies that have pursued stock splits this year include Nvidia, Broadcom, Walmart, and Chipotle Mexican Grill. Sony is in the midst of a turnaround On the surface, divesting non-core assets may be seen as a risk due to the complex nature and time consumption of these transactions. I'd argue that Sony is simply in the middle of a turnaround, and has identified areas that are no longer pertinent to the lo ...

The investment community will be closely monitoring the performance of Sony in its forthcoming earnings report. The company is predicted to post an EPS of $1.08, indicating a 15.63% decline compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $17.42 billion, indicating a 4.68% growth compared to the corresponding quarter of the prior year. Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections ...

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 0.32% lower. Sony currently has a Zacks Rank of #3 (Hold). In terms of valuation, Sony is currently trading at a Forward P/E ratio of 17.14. This expresses a discount compared to the average Forward P/E of ...

Valuation is also important, so investors should note that Sony has a Forward P/E ratio of 14.8 right now. This denotes a discount relative to the industry's average Forward P/E of 21.16. Shares of the electronics and media company have appreciated by 5.62% over the course of the past month, outperforming the Consumer Discretionary sector's gain of 2.11% and the S&P 500's gain of 3.38%. The investment community will be closely monitoring the performance of Sony in its forthcoming earnings report. The compan ...

Over the past month, shares of this electronics and media company have returned +5.6%, compared to the Zacks S&P 500 composite's +3.4% change. During this period, the Zacks Audio Video Production industry, which Sony falls in, has gained 2.5%. The key question now is: What could be the stock's future direction? Earnings Estimate Revisions Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When ...

Financial Performance - For the fiscal year ended March 31, 2024, sales increased by 2,046.4 billion yen year-on-year to 13,020.8 billion yen, driven by significant increases in the Financial Services, G&NS, Music, and I&SS segments [241]. - Operating income for the fiscal year ended March 31, 2024, decreased by 93.6 billion yen year-on-year to 1,208.8 billion yen, primarily due to declines in the Financial Services and I&SS segments [247]. - Net income attributable to Sony Group Corporation's stockholders for the fiscal year ended March 31, 2024, decreased by 34.7 billion yen year-on-year to 970.6 billion yen [252]. - Adjusted OIBDA for the fiscal year ended March 31, 2024, was 1,826.1 billion yen, essentially flat year-on-year, with significant increases in the G&NS, Music, and I&SS segments offset by a decrease in the Financial Services segment [254]. - For the fiscal year ended March 31, 2024, financial income increased by 94.5 billion yen year-on-year to 125.6 billion yen, while financial expenses rose by 6.8 billion yen to 65.8 billion yen, resulting in a net income of 59.8 billion yen [248]. - The effective tax rate for the fiscal year ended March 31, 2024, was 22.7%, up from 20.6% in the previous fiscal year, primarily due to the absence of a decrease in deferred tax liabilities [250]. - Adjusted OIBDA decreased by 140.9 billion yen year-on-year to 181.5 billion yen, primarily due to factors affecting operating income [284]. - Consolidated sales increased by 2 trillion 46.4 billion yen (19%) year-on-year to 13 trillion 20.8 billion yen for the fiscal year ended March 31, 2024 [300]. - Operating income for the consolidated entity decreased from 1,302.4 billion yen in 2023 to 1,208.8 billion yen in 2024, a decline of approximately 7.2% [294]. Segment Performance - In the G&NS segment, sales increased by 623.1 billion yen year-on-year to 4,267.7 billion yen, attributed to higher sales of non-first-party titles and favorable foreign exchange rates [256]. - The Music segment's sales increased by 238.3 billion yen year-on-year to 1,619.0 billion yen, primarily due to growth in streaming services and merchandise sales [262]. - The G&NS segment's operating income increased by 40.2 billion yen year-on-year to 290.2 billion yen, supported by strong user engagement and sales growth [257]. - Adjusted OIBDA in the Music segment increased by 52.3 billion yen year-on-year to 368.7 billion yen, driven by higher sales and a remeasurement gain [264]. - The Pictures segment operating income was 117.7 billion yen, essentially flat year-on-year, with a 10% decrease on a U.S. dollar basis due to higher marketing costs [268]. - The ET&S segment reported total sales of 2 trillion 453.7 billion yen, essentially flat year-on-year, with operating income increasing by 7.9 billion yen to 187.4 billion yen, primarily due to foreign exchange rate impacts [272]. - The I&SS segment saw sales increase by 200.6 billion yen year-on-year to 1 trillion 602.7 billion yen, mainly due to higher sales of image sensors for mobile products [276]. - Financial services revenue increased by 880.9 billion yen year-on-year to 1 trillion 770.0 billion yen, driven by a significant increase in revenue at Sony Life [282]. - Operating income for the Financial Services segment decreased by 144.5 billion yen year-on-year to 173.6 billion yen, primarily due to a decrease in operating income at Sony Life [283]. Strategic Initiatives - Sony aims to strengthen its content IP and relationships with artists, focusing on emerging markets and local talent investment [265]. - The company plans to expand its anime business and improve fan engagement in its game business, leveraging key IP [265]. - Sony intends to utilize AI in its imaging business to enhance product features and improve efficiency [274]. - The company is strategically investing in its automotive image sensor business and anticipates growth in the semiconductor laser market due to increasing demand [279]. - Sony aims to focus on creating stable cash flows towards the spin-off of the Financial Services business scheduled for the fiscal year ending March 31, 2026 [285]. - The company identified three customer segments for future growth: Generation Z, semi-affluent and mass-affluent customers, and pre-seniors and seniors [285]. - Sony plans to increase its total payout ratio to approximately 40% by the fiscal year ending March 31, 2027, as part of its shareholder return strategy [380]. - Sony's long-term vision, "Creative Entertainment Vision," aims to maximize IP value and evolve the diversity of its businesses and people [354]. - Sony is developing a shared Group "Engagement Platform" to efficiently maximize the value of IP [372]. Cash Flow and Liquidity - For the fiscal year ended March 31, 2024, there was a net cash inflow of 1 trillion 373.2 billion yen from operating activities, an increase of 1 trillion 58.5 billion yen year-on-year [318]. - The Financial Services segment had a net cash inflow of 246.4 billion yen, a significant turnaround from a net cash outflow of 56.3 billion yen in the previous fiscal year [320]. - Sony used 818.9 billion yen of net cash in investing activities, a decrease of 233.8 billion yen year-on-year [320]. - The total outstanding balance of cash and cash equivalents as of March 31, 2024, was 1 trillion 907.1 billion yen, with an increase of 268.9 billion yen in cash and cash equivalents for all segments excluding the Financial Services segment [325]. - Net cash outflow from financing activities was 210.7 billion yen, compared to a net cash inflow of 84.3 billion yen in the previous fiscal year [322]. - Sony maintains unused committed lines of credit totaling 766.4 billion yen as of March 31, 2024, to secure liquidity [333]. - The company aims to maintain stable credit ratings to ensure financial flexibility and access to funding resources [334]. Research and Development - R&D costs for the fiscal year ended March 31, 2024, increased by 7.1 billion yen (1%) year-on-year to 742.8 billion yen, with a ratio of R&D costs to consolidated sales excluding the Financial Services segment at 6.6% compared to 7.3% in the previous fiscal year [347]. - The company plans to invest ¥500 billion in R&D for new technologies and product development over the next three years [417]. Corporate Governance and Remuneration - Total remuneration for Directors and Corporate Executive Officers amounted to 8,170 million yen, with 1,698 million yen allocated to restricted stock [418]. - The basic policy for remuneration emphasizes linking Senior Executive pay to business results and shareholder value [431]. - The Corporation adopted a clawback policy for the recoupment of compensation [431]. - The number of Corporate Executive Officers who resigned by the end of the fiscal year was two, impacting the total remuneration figures [421]. - CEO's remuneration composition: 11% fixed, 11% linked to business results, 78% stock-based compensation [436]. - The Corporation utilizes stock acquisition rights, restricted stock, and RSUs as forms of stock-based compensation for Directors and Senior Executives [437].