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.
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."