The 10-second takeaway
For the quarter ended March 31 (Q4), Sony beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue contracted. Non-GAAP earnings per share grew. GAAP earnings per share grew.
Margins increased across the board.
Sony booked revenue of $18.40 billion. The three analysts polled by S&P Capital IQ looked for revenue of $17.74 billion on the same basis. GAAP reported sales were 5.4% lower than the prior-year quarter's $19.13 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 $0.94. The one earnings estimate compiled by S&P Capital IQ anticipated $1.01 per share. Non-GAAP EPS were $0.94 for Q4 compared to -$3.18 per share for the prior-year quarter. GAAP EPS were $0.85 for Q4 compared to -$3.09 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 17.3%, 140 basis points better than the prior-year quarter. Operating margin was -2.1%, 120 basis points better than the prior-year quarter. Net margin was 5.5%, much better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $16.34 billion. On the bottom line, the average EPS estimate is $0.08.
Next year's average estimate for revenue is $74.61 billion. The average EPS estimate is $0.51.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 1,247 members out of 1,733 rating the stock outperform, and 486 members rating it underperform. Among 376 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 245 give Sony a green thumbs-up, and 131 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 $19.68.
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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 has no position in any of the stocks mentioned. 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.