The 10-second takeaway
For the quarter ended June 30 (Q1), Sony missed estimates on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew slightly and GAAP loss per share expanded.
Margins dropped across the board.
Sony recorded revenue of $18.96 billion. The six analysts polled by S&P Capital IQ hoped for net sales of $19.86 billion on the same basis. GAAP reported sales were 2.3% higher than the prior-year quarter's $18.54 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.31. The one earnings estimate compiled by S&P Capital IQ predicted $0.22 per share. GAAP EPS were -$0.31 for Q1 compared to -$0.19 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 22.6%, 80 basis points worse than the prior-year quarter. Operating margin was 0.4%, 160 basis points worse than the prior-year quarter. Net margin was -1.6%, 60 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $21.24 billion. On the bottom line, the average EPS estimate is $0.21.
Next year's average estimate for revenue is $89.20 billion. The average EPS estimate is $0.03.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 1,203 members rating the stock outperform and 492 members rating it underperform. Among 382 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 231 give Sony a green thumbs-up, and 151 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Sony is hold, with an average price target of $17.24.
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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. The Motley Fool is short Sony (ADR) and has the following options: long JAN 2013 $22.00 calls on Sony (ADR). 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.