Why Sony (SNE) Stock Dropped Today

NEW YORK (TheStreet) -- Sony (SNE) stock is enduring a tough trading session Wednesday after the company guided for another fiscal loss this year, its sixth annual loss in seven years. The Japanese tech company has struggled to turn a profit in recent years on flagging sales in consumer electronics and expensive restructuring moves.

For the fiscal year to March 2015, Sony said it expects to splash 135 billion yen ($1.3 billion) on restructuring costs as it nixes its unprofitable businesses related to PC and disc storage sales. In particular, its sale of laptop brand VAIO, scheduled to close in July, is expected to drag on profits.

By late afternoon, shares had dropped 7.3% to $16.36.

Must Read: Warren Buffett's 10 Favorite Growth Stocks

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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 compelling growth in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and poor profit margins."

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.


WATCH: More market update videos on TheStreet TV | More videos from Keris Alison Lahiff

More from Markets

Alphabet Earnings, Bond Yields Rise, Akorn Plunges - 5 Things You Must Know

Alphabet Earnings, Bond Yields Rise, Akorn Plunges - 5 Things You Must Know

Street Stats: The Mid-Term Elections May Be a Rollercoaster Ride for Investors

Street Stats: The Mid-Term Elections May Be a Rollercoaster Ride for Investors

Global Stocks Slip as 3% 10-Year Yields, Tech Weakness Unsettle Markets

Global Stocks Slip as 3% 10-Year Yields, Tech Weakness Unsettle Markets

Akorn Plunges as Germany's Fresenius Ditches Takeover Amid Data Allegations

Akorn Plunges as Germany's Fresenius Ditches Takeover Amid Data Allegations

Stocks Sputter as U.S. 10-Year Yields Test 3% Amid Commodity-Led Inflation Spike

Stocks Sputter as U.S. 10-Year Yields Test 3% Amid Commodity-Led Inflation Spike