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Sony (SNE) to Report Q2 Earnings: What's in the Offing?

Zacks Equity Research
·4 min read

Sony Corporation SNE is scheduled to report second-quarter fiscal 2020 results on Oct 28, before the opening bell. In the last reported quarter, the company delivered a positive earnings surprise of 295.5%. The bottom line surpassed the Zacks Consensus Estimate by $1.30.

The Japan-based company is expected to have recorded lower aggregate revenues year over year due to business disruptions caused by the COVID-19 pandemic. It is taking actions to adapt flexibly to changes in the operating environment and increase focus on managing each of the businesses.

Factors at Play

During the quarter under review, Sony invested $250 million to acquire a minority interest in Epic Games — a leading entertainment company that provides 3D engine technology — through one of its wholly owned subsidiaries.

Also, Sony unveiled the high-precision Global Navigation Satellite System (GNSS) receiver LSIs for use in IoT and wearable devices. Sony Semiconductor Solutions’ GNSS receiver chips make use of high-frequency analog and digital signal processing circuits, along with innovative designs to deliver accurate positioning.

Sony developed Dynamic Spectrum Access technology for the optimized use of radio frequency resources. The technology enables new operators and users to utilize a spatio-temporally underutilized spectrum already assigned to incumbent operators without the risk of radio interference.

The company completed making Sony Financial Holdings Inc. a wholly owned subsidiary. This was done to achieve further growth and strengthen governance within the financial services business while enhancing the corporate value of the Sony Group. These developments are likely to get reflected in the upcoming results.

For the September-ended quarter, the Zacks Consensus Estimate for revenues is pegged at $17,527 million, indicating a decline of 11.4% from the year-ago quarter’s reported figure. The consensus mark for adjusted earnings per share is pegged at 90 cents, which suggests a fall of 35.3% from the prior-year quarter’s recorded figure.

What Our Model Says

Our proven model doesn’t predict an earnings beat for Sony this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: Sony’s Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00% as both are pegged at 90 cents.

Sony Corporation Price and EPS Surprise

Sony Corporation Price and EPS Surprise
Sony Corporation Price and EPS Surprise

Sony Corporation price-eps-surprise | Sony Corporation Quote

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Zacks Rank: Sony has a Zacks Rank #4 (Sell), at present.

Stocks to Consider

Here are some companies that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:

Generac Holdings GNRC is slated to release third-quarter 2020 results on Oct 28. It has an Earnings ESP of +4.70% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Century Communities CCS is scheduled to release third-quarter 2020 results on Oct 28. The company has an Earnings ESP of +7.53% and a Zacks Rank #1.

Owens Corning OC has an Earnings ESP of +12.46% and a Zacks Rank of 1. The company is set to report third-quarter 2020 results on Oct 28.

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Sony Corporation (SNE) : Free Stock Analysis Report
 
Owens Corning Inc (OC) : Free Stock Analysis Report
 
Century Communities, Inc. (CCS) : Free Stock Analysis Report
 
Generac Holdlings Inc. (GNRC) : Free Stock Analysis Report
 
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