What we know:
Fiscal Quarter Gaming Related:
18.5 million units sold for PS4 and 81.8 units software and 4.1 million this holiday season (as of Jan, 5th 2015)
10.9 million playstation plus subscribers
Q4 game releases (Sony published): Driveclub and Minecraft
Playstation(Vita) TV released October 14th/November 14th 2014 in the US and EU.
Earnings Preview from the Wall Street Journal:
Sony is scheduled to announce its fiscal third-quarter earnings after the market closes on Wednesday in Tokyo. Here’s what you need to know:
EARNINGS FORECAST: The entertainment and electronics giant is expected to report a net profit of ¥31.91 billion ($269.54 million) for the three months ended December, according to a poll of analysts surveyed by financial data provider Quick. A year earlier, it reported a net profit of ¥27 billion.
REVENUE FORECAST: Revenue is expected to stay flat at ¥2.36 trillion ($20.1 billion) from ¥2.41 trillion a year earlier.
WHAT TO WATCH:
- http://s3.wsj.net/img/sprite_speakeasy.png) -690px -253px no-repeat;">Preliminary data from Sony Pictures: Sony has said that figures from its Los Angeles-based subsidiary, Sony Pictures Entertainment, will be provisional, but investors will still keep an eye on them following the recent hacking attack, which forced the studio to shut down its intranet system, making it unable to finalize its books before the earnings reporting deadline. Sony’s electronics and financial units will report their final numbers, though Sony’s earnings as a whole will be subject to a revision at the end of March.
- http://s3.wsj.net/img/sprite_speakeasy.png) -690px -253px no-repeat;">Financial impact from hacking: Despite the attention the hacking incident got globally, analysts say the financial damage won’t be severe to its earnings. “The Interview” ended up being one of the most-purchased content via video- on-demand services in the U.S. Sony Chief Executive Kazuo Hirai also said in an interview in January that the financial impact from the incident will be limited, though it won’t likely provide upside potential either.
- http://s3.wsj.net/img/sprite_speakeasy.png) -690px -253px no-repeat;">Is the TV business turning the corner? Sony’s TV business is expected to record an operating profit in the third-quarter, buoyed by ultra-high-definition sets called 4K. That would mark the third straight quarter of profit — the first time the TV business has had a profit streak of that length since the period ended March 2004. Analysts say the TV segment will turn to the black for the full-year ending in March, after a decade of losses. Still, analysts are divided over whether Sony should keep the TV unit in house because the segment is expected to remain a low-margin business due to stiff competition.
- http://s3.wsj.net/img/sprite_speakeasy.png) -690px -253px no-repeat;">Mobile-phone plans: Its Xperia smartphone unit was the only unprofitable business during the July-September quarter, and Sony says overhauling the segment is an urgent task. It hasn’t been able to present how it would revive the unit partly because the segment named a new chief, Hiroki Totoki, only a few months ago. Some analysts say Sony should shrink the smartphone business drastically—as well as the TV unit—to focus more on promising projects including the PlayStation videogame platforms. Analysts will be paying attention to any updates.
- http://s3.wsj.net/img/sprite_speakeasy.png) -690px -253px no-repeat;">Completing Restructuring Efforts: Mr. Hirai has repeatedly said the company would finish its large-scale restructuring efforts during this fiscal year ending in March and shift its focus to growth areas from April. Chief Financial Officer Kenichiro Yoshida says the progress is on schedule, and analysts will be confirming the latest update. While it’s very unlikely, many analysts say Sony should cut jobs more drastically than it had announced, to be more profitable in the longer-term.
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http://blogs.wsj.com/digits/2015/02/03/sony-earnings-what-to-watch-5/
