Sony soars as analysts see record profit
TOKYO: Sony Corp shares jumped to their highest since May 2015 after a bullish earnings report triggered analyst predictions that the electronics maker could achieve record profit this year.
The firm rose three per cent to 3,873 yen at the close, here, yesterday after forecasting operating profit of 500 billion yen (RM19.58 billion) for the fiscal year through March 2018, thanks to continued dominance in gaming and strong growth in phonecamera chips.
While that was mostly in line with the 507 billion yen average estimate, analysts from Goldman Sachs Group Inc to Jefferies Group said Sony could surpass its previous record profit of 525.7 billion yen in 1998.
Chief executive officer Kazuo Hirai, who took the helm in 2012, has steered the firm through years of restructuring and put more focus on gaming, camera chips and finance.
“We expect Sony to achieve its medium-term plan operating profit target for the first time in 10 years and believe it may surpass its record high,” said Goldman analysts Masaru Sugiyama and Yusuke Noguchi.
Sony’s stock, which has doubled since 2013, is up 18 per cent this year, outperforming the Topix Index.
Operating profit in the fiscal year through March slipped 1.9 per cent to 288.7 billion yen while net income halved to 73.3 billion yen as earthquakes in Kyushu a year ago derailed the company’s chip and camera businesses. Revenue fell 6.2 per cent to 7.6 trillion yen. Bloomberg