Sony Profit Beats Estimates as Selfies Drive Demand for SensorsPavel Alpeyev and Grace Huang
Sony Corp. profit tripled in the first quarter as a renewed focus on sensor chips and video games begins to pay off for an electronics maker that posted losses for six of the past seven years.
Net income jumped to 82.4 billion yen ($664 million) in the three months ended June, the Tokyo-based company said on Thursday. That compares with the 40.3 billion yen average of three analyst estimates compiled by Bloomberg.
President Kazuo Hirai has said this fiscal year marks the beginning of an expansion phase after the maker of the PlayStation 4 cut thousands of jobs and shifted focus away from phones and consumer electronics. Sony plans to raise $3.4 billion selling stock and convertible bonds to help pay for a fourfold increase in semiconductor spending as it also invests in video game network services and virtual reality gear.
“Market expectations for Sony have changed to now anticipate growth,” Kazunori Ito, an analyst at Barclays Plc in Tokyo, said prior to the earnings release. “The PS4 had an excellent start and is now at a point where Sony is expected to begin reaping the benefits.”
To continue reading this article you must be a Bloomberg Professional Service Subscriber.
If you believe that you may have received this message in error please let us know.
- Morgan Stanley Says Stock Slide Was Appetizer for Real Deal
- U.S. Stocks Fall With Treasuries, Dollar Climbs: Markets Wrap
- U.S. Pays Up to Auction $179 Billion of Debt in a Span of Hours
- Florida Teachers’ Pension Fund Invested in Maker of School Massacre Gun
- ‘No Cash’ Signs Everywhere Has Sweden Worried It’s Gone Too Far