The 10-second takeaway
For the quarter ended Dec. 31 (Q3), Sony missed estimates on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share contracted to a loss.
Gross margins increased, operating margins dropped, net margins contracted.
Sony logged revenue of $23.69 billion. The nine analysts polled by S&P Capital IQ anticipated a top line of $24.75 billion. Sales were 13% lower than the prior-year quarter's $27.19 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS came in at -$2.06. The one earnings estimate compiled by S&P Capital IQ forecast $0.48 per share. GAAP EPS were -$2.06 for Q3 against $0.89 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 48.8%, 2,430 basis points better than the prior-year quarter. Operating margin was -6.8%, 1,300 basis points worse than the prior-year quarter. Net margin was -8.7%, 1,200 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $19.71 billion. On the bottom line, the average EPS estimate is -$1.05.
Next year's average estimate for revenue is $85.05 billion. The average EPS estimate is -$1.61.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 1,181 members out of 1,636 rating the stock outperform, and 455 members rating it underperform. Among 359 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 226 give Sony a green thumbs-up, and 133 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Sony is outperform, with an average price target of $22.72.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.