Categories Earnings, Technology
Sony Corp shows signs of fatigue as games, electronics push Q1 results lower
Japanese conglomerate Sony Corp (NYSE: SNE) reported a 1% year-over-year decline in total revenues in the first quarter of 2019, hurt by weakness in its gaming and electronics businesses. Q1 revenue of approx. $17.52 billion ($1.925 trillion yen) was lower than the street projection of $18.79 billion.
Sales in the Game & Network Services unit fell 3%, primarily due to a decrease in the contribution from first-party game software like God of War last year.
Meanwhile, hurt by the decrease in unit sales of TVs and Xperia smartphones, sales in the Electronics Products & Solutions segment decreased 15% year-on-year.
The lackluster sales in these two segments have forced the company to slash its full-year sales forecast. FY 2019 sales outlook for games division was reduced to 2.2 trillion yen, compared to the April forecast of 2.3 trillion yen.
Similarly, guidance for full-year sales in the electronics segment was cut down to 2.16 trillion yen from the earlier guidance of 2.24 trillion yen.
On a consolidated basis, the company currently expects full-year total revenues of 8.6 trillion yet, much lower than the April guidance of 8.8 trillion yen.
READ: Apple needs to clear many hurdles to push stock higher post Q3 earnings
Music and Pictures were among the better performing divisions in Q1, recording sales growth of 12% and 6% respectively.
First-quarter earnings fell 32% to approximately $1.08 (119.22 yen) per share. Excluding certain one-time items, net income would have increased 4%.
Sony shares were up 3.29% during early trading hours on Tuesday. The stock has gained 12.3% in the year-to-date period.
Most Popular
What to look for when CVS Health (CVS) reports Q3 earnings
Healthcare company CVS Health Corporation (NYSE: CVS) is all set to report earnings next week, with Wall Street expecting a mixed outcome. The company has been facing challenges in certain
eBay (EBAY): A few factors that helped drive growth in Q3 2024
Shares of eBay Inc. (NASDAQ: EBAY) stayed green on Friday. The stock has gained 32% year-to-date. The ecommerce leader delivered revenue and earnings growth for the third quarter of 2024,
CVX Earnings: Chevron reports lower revenue and profit for Q3 2024
Energy exploration company Chevron Corporation (NYSE: CVX) on Friday announced third-quarter 2024 financial results, reporting a decline in net profit and revenues. Net income attributable to Chevron Corporation dropped to