Sony Goes Negative

Sony (NYS: SNE) reported earnings on Feb. 2. Here are the numbers you need to know.

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.

Revenue details
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 details
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.

Margin details
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.

Looking ahead
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.

Investor sentiment
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.

At the time this article was published 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 ofMotley 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.

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