Shares of Sony Corp. (SONY) gained in pre-market trading after the company reported robust Fiscal second quarter results. The Japanese electronics conglomerate company’s earnings soared by 72.3% to ¥55.74 per share.
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SONY’s Game and Services Business Drives Revenues
Furthermore, the company’s revenues increased by 9% year-over-year to ¥2.97 trillion in the second quarter, just shy of the ¥3.03 trillion expected by analysts.
In addition, Sony saw strength in its Game and Network Services division, which houses its popular PlayStation home console brand. This business reported revenues of ¥1.1 trillion, up 12% year-over-year, and accounted for more than 30% of its total revenues.
However, the company’s sales of its PlayStation 5 consoles declined by 22% year-over-year to 3.8 million units in the September quarter. Still, the company saw a 28% jump in game software sales in Q2 to ¥612.3 billion. In fact, Astro Bot, a new platform title released for the PS5 in September, sold 1.5 million units in its first 58 days after release.
SONY Raises FY25 Guidance
Looking ahead, the company raised its FY25 revenue target slightly to ¥12.7 trillion, compared to its prior outlook of ¥12.6 trillion. The company also maintained its FY25 operating profit projection at ¥1.3 trillion, indicating confidence in its growth outlook.
Is SONY Stock a Buy or Sell?
Analysts remain cautiously optimistic about SONY stock, with a Moderate Buy consensus rating based on a unanimous two Buys. Over the past year, SONY has increased by more than 4%, and the average SONY price target of $22.30 implies an upside potential of 22% from current levels. These analyst ratings are likely to change following SONY’s results today.
