Tuesday, July 30, 2019
Sony Corp. reported earnings for its fiscal first quarter late on Monday that were above Wall Street expectations.
The Japan-based entertainment and technology company reported net profit of $1.4 billion for the three-month period ending in June, which was down 33% compared with the income Sony reported during the same quarter a year ago. Earnings per share were $1.08, which is above the 82 cents per-share earnings forecast by analysts surveyed by MarketWatch.
Overall revenue for the quarter amounted to $17.5 billion, which is down roughly 1% from last year and below the $18.8 billion the sole analyst covering the company on Yahoo Finance expected.
Sony said that its Sony Pictures filmed division, which includes the motion pictures business as well as TV production and media networks, reported higher theatrical revenues in the quarter thanks in part to the theatrical releases of “Men in Black: International.”
The Sony Pictures segment garnered revenue of $1.70 billion in the quarter and an operating income of $3 million.
“Men in Black: International,” which was the biggest release in the quarter for Sony, has grossed $247.7 million worldwide at the box office to date, not all within the quarter. Sony also said it was helped by the release of “Spider-Man: Far From Home,” which recently passed the $1 billion mark at the box office.
During the company’s first quarter it also released “Intruder,” which contributed $36.o million in box office revenue, and “Brightburn,” which grossed $31 million at the box office during the quarter.
In June Sony shouldered renewed pressure from activist investor Dan Loeb, who called for the company to spin off its semiconductor business, sell its stake in Spotify, and double down on becoming a “creative entertainment company.”
Loeb’s investment firm, Third Point Management, disclosed a $1.5 billion investment in Sony and said that the electronics and entertainment company’s “complex structure and business holdings” has led to a stock price discount. The firm argued that the moves would allow the company to “reduce complexity” and emphasize its gaming, music and film businesses.
Shares of Sony are up roughly 1.7% in the last five days have gained 13.3% in the year-to-date.
Source: the wrap feed