Seeking Alpha

Sony's FY loss set to be almost 20% higher than forecast

  • Sony's (SNE) preliminary fiscal-year net loss was ¥130B ($1.3B), 18% above a February forecast of ¥110B and far worse than the company's even earlier FY guidance for a profit of ¥30B. In FY 2013, Sony made a profit of ¥43B.
  • Operating profit ¥26B vs a prior prediction of ¥80B and ¥230B in FY 2013.
  • Sony will book additional costs of ¥30B for its PC unit, which the company is selling, and ¥25B of charges for its overseas disc manufacturing operations amid falling demand.
  • On the brighter side, FY sales rose a preliminary 14.3% to ¥7.77T, higher than a previous forecast of ¥7.7T. (PR)

Check out Seeking Alpha’s new Earnings Center »

Comments (1)
  • mathari
    , contributor
    Comments (240) | Send Message
     
    This is a great company. While everyone else is losing ground on revenues, SNE increased revenues. You have to have some brass ones to buy them amid all this bad news, but the descent has or will stop soon and you should get ready to swoop them up. I think this week or next, it will bottom out at $15-16 at which point it will be a fantastic buy.

     

    In fact, I am typing this comment on a Viao (the PC business is no longer profitable for anyone - IBM disposed of its business to Lenovo years ago - INTC is struggling to find itself). Best TVs, best game platform, etc. I have at least 30 of their products in my home and small business and if I have a choice to buy Sony, I usually do.

     

    The company's strategy appears to be to create subsidiaries and separate them into pieces which function independently. Sounds like a good strategy. Let the TV division become its own company with its own vision and direction. Sony Financial (insurance) is strong independently. By the way, did I say 7 million play stations sold which should also be separated out into a gaming company. Sony's large scale energy storage solutions are coming, as a joint venture with a Canadian Co., allowing storage of power from the grid to ion batteries (a huge business that will revolutionize energy as we know it). Even their film division is finally coming around and should also be broken apart from the main company to run more independently.

     

    This is a strong company with $18B in market cap and $75B in revenues which needs to make the turn to profitability better. It does not deserve a market cap of $15B but when it gets there, which it will this or next week, buy it like the dickens and watch it double in no time.
    3 May 2014, 10:16 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs