Sony reported second-quarter results which failed to hit targets, posting a quarterly net loss of 19.3 billion yen ($197 million), a 24.5% larger loss then the previous year.
Contributing to declining profitability, Sony's movie business had an operating loss of 17.8 billion yen ($181 million) compared to a profit of 7.9 billion yen a year ago. Poor performance in this segment was partially credited to the underwhelming performance of White House Down, compared to last year's summer hit The Amazing Spider-Man.
The Tokyo-based business recorded an earnings loss of 18.91 yen, or 19 cents, a share, a 22.7% decline in profitability compared to second quarter 2012.
Shares fell 12.2% to $17.06 by 10:05 a.m. EDT. Year to date, Sony has risen 52.9%, outpacing the S&P 500's 23.64% gain.
TheStreet Ratings team rates Sony Corp as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate Sony Corp (SNE) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and poor profit margins."