Shares of Sony (SONY -0.63%) surged on Wednesday after the electronics giant reported fiscal third-quarter results that beat expectations, largely due to the strength of its gaming business. The company also raised its outlook for the full fiscal year. Sony stock was up about 10% at 10:50 a.m. EST.
Sony reported third-quarter revenue of 2,695.5 billion yen, or about $25.6 billion, up 9% year over year and ahead of the average analyst estimate of $24.8 billion. Net income soared 62% to 371.9 billion yen, or $3.5 billion.
The gaming and music segments drove the revenue growth, while the pictures and imaging and sensing solutions segments were weak. Gaming and network services sales grew 40% to 883.2 billion yen, while music sales jumped 22% to 264.5 billion yen.
Sony launched the PlayStation 5 game console in November. Demand has been strong, but chip shortages have played a role in making the console difficult to find in stock.
Sony now expects to produce full-year revenue of 8,800 billion yen, up from a previous outlook of 8,500 billion yen. The company generated revenue of 8,260 billion yen in fiscal 2019. Sony also raised its guidance for operating income and net income.
The company raised its revenue guidance for all segments except pictures. Gaming and network services sales are now expected to come in at 2,640 billion yen for the year, making it the largest segment, by far, thanks to the PlayStation 5.
Wednesday's gain has more than erased recent losses for Sony stock. Shares are now up about 58% over the past year.