On Jan. 30, Sony (NYSE:SNE) released third-quarter earnings for the period ended Dec. 31.
- Revenues increased 9.2% led by a strong performance by the Pictures segment with the releases of The Da Vinci Code, Talladega Nights: The Ballad of Ricky Bobby, and Click.
- While overall sales rose 5.6% in the game segment from the release of the PS3, the company recorded $455 million dollars in operating losses from "the loss arising from the sale of PS3 at strategic price points." This affected the bottom line, which declined by 6.1%.
- Sony is only a one-star stock in CAPS, our new interactive stock database, with the Foolish community torn about whether this company will beat the S&P 500.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Q3 2006 |
Q3 2005 |
Change | |
|---|---|---|---|
|
Sales |
$21,913 |
$20,064 |
9.2% |
|
Net Profit |
$1,344 |
$1,432 |
(6.1%) |
|
EPS |
$1.28 |
$1.37 |
(6.6%) |
|
Diluted Shares |
1,048.7 |
1,045.6 |
0.3% |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q3 2006 |
Q3 2005 |
Change* | |
|---|---|---|---|
|
Gross Margin |
30.2% |
33.5% |
(3.3) |
|
Operating Margin |
6.9% |
8.6% |
(1.7) |
|
Net Margin |
6.1% |
7.1% |
(1.0) |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q3 2006 |
Q3 2005 |
Change |
|---|---|---|---|
|
Cash + ST Invest.* |
$10,268 |
$9,684 |
6.0% |
|
Trade Notes and Accounts Rec. |
$15,220 |
$12,276 |
24.0% |
|
Inventory |
$8,119 |
$6,369 |
27.5% |
|
Liabilities |
Q3 2006 |
Q3 2005 |
Change |
|---|---|---|---|
|
Accounts Payable** |
$18,033 |
$14,871 |
21.3% |
|
Long-Term Debt |
$8,430 |
$5,513 |
52.9% |
Learn the ways of the balance sheet.
Cash Flow Highlights
|
YTD 2006 |
YTD 2005 |
Change | |
|---|---|---|---|
|
Cash From Ops. |
$1,318.0 |
$1,053.0 |
25.2% |
|
Capital Expenditures |
$3,447.0 |
$2,765.0 |
24.7% |
|
Free Cash Flow |
($2,129.0) |
($1,712.0) |
N/A |
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Related Companies:
- Matsushita Electric Industrial (NYSE:MC)
- Koninklijke Philips Electronics (NYSE:PHG)
- Microsoft (NASDAQ:MSFT)
Related Foolishness:
Microsoft is an Inside Value recommendation. To see what other companies have been recommended, take a free 30-day trial today.
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