This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Revenue Slips at Sony

Revenue and operating income slumped at Sony (SNE - Get Report) in its fiscal third quarter, as sagging sales of its PlayStation 2 and other electronics products weighed on results. But the electronics giant posted an improved bottom line, thanks to an accounting change.

Investors largely shrugged off the report, which came long before the opening bell on the New York Stock Exchange. In recent trading, Sony ADR's were off 22 cents, or 0.6%, to $36.72.

The declines in the company's results were largely expected. Last week, the company lowered its outlook on its full-year revenue and operating income, warning of falling prices on portable audio products, DVD recorders, televisions and other products.

In a statement, Sony Chairman and CEO Nobuyuki Idei warned that the company's results may not improve any time soon.

"Looking forward, we anticipate that the intense environment within the electronics industry is likely to continue," Idei said. "Sony reiterates its belief that strengthening the competitiveness of our electronics products is the most pressing issue facing our management today."

In the holiday quarter, Sony earned 143.8 billion yen, or 138.08 yen per share. That compared favorably to earnings of 92.6 billion yen, or 92.51 yen a share, in the year-earlier period.

But the company's sales fell 7.5% to 2.15 trillion yen year over year. And Sony's operating income plummeted 13% to 138.2 billion yen from the third quarter a year prior.

As noted in the company's updated guidance, in the third quarter Sony changed its outlook on its U.S. operations, based on an improvement in those operations results. Thanks to that changed outlook, the company was able to use in the quarter a higher portion of tax credits that it had generated from past losses of its U.S. businesses.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AAPL $124.75 0.00%
SNE $30.01 0.00%
FB $80.78 0.00%
GOOG $524.05 0.00%
TSLA $206.79 0.00%

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs