Download Unicorn Signals App

Powered By EquityPandit
 Signals, Powered By  EquityPandit

Sony Shares Fall on Weaker-Than-Expected Annual Outlook

The negative earnings outlook sent Sony shares down 4.8%.

Shares of Japanese electronics and entertainment conglomerate Sony Group Corp fell 4.8% on Monday after its annual profit outlook fell short of market expectations.

The company on Friday reported a record operating profit for the year through March 2023, fuelled by strong performances in its music and microchip divisions.

However, for the current fiscal year, it expects profit to fall 3.2% to 1.17 trillion yen ($8.55 billion), below analysts’ average estimate of 1.275 trillion yen profit, as it expects a slow recovery in profitability in the videogame segment.

Due to a chaotic supply chain, Sony has struggled to produce enough PS5s to meet demand during the COVID-19 pandemic. Still, President Hiroki Totoki said Friday that the company is now ready to deliver the console without making customers wait.

The group aims to sell a record 25 million PS5 units in the year to next March.

Get Daily Prediction & Stocks Tips On Your Mobile