Shares of Sony Group Corp. fell as much as 4.8% on Monday after the Japanese electronics and entertainment conglomerate’s annual earnings forecast fell short of market expectations.
The company posted a record operating profit on Friday for the year ending March 2023, thanks to the strong performance of its music and microchip divisions.
For the current fiscal year, however, the company expects earnings to fall 3.2% to 1.17 trillion yen ($8.55 billion), missing the average analyst estimate of 1.275 trillion yen.
Jefferies analyst Atul Goyal said in a note to clients that Sony’s outlook is “too conservative” and that its PlayStation 5 (PS5) game consoles and software are likely to benefit from the catch-up demand.
Sony struggled to make enough PS5 to meet demand during the COVID-19 pandemic due to supply chain bottlenecks, but president Hiroki Totoki said Friday that the company is now ready to ship the consoles without keeping customers waiting.
The conglomerate wants to sell a record 25 million units of the PS5 in the year to March.
($1 = 136,9000 yen)
2023-05-01 04:45:58
#Sony #Group #Corporation #Shares #Sony #fall #weakerthanexpected #annual #outlook
