Sony Jumps to Decade High as PlayStation Drives Higher Forecast

Posted On August 1, 2018 1:41 pm

Sony Corp. jumped to its highest in more than a decade after raising its outlook for the current fiscal year, thanks to robust sales of the PlayStation 4 console and profits from its stake in recently listed Spotify Technology SA.

Shares rose as much as 5.4 percent in early Tokyo trading, heading for their highest close since 2008, after the company lifted its full-year net income and revenue forecasts and also sharply beat operating profit estimates for the June quarter.

“Sony secured a big beat on all fronts,” Atul Goyal, an analyst at Jefferies Group, wrote in a report. “The Games segment had a spectacular quarter with God of War success. We don’t think it can beat this quarter anytime soon. But, with more first party games, we expect this will remain a big driver.”

Net income will be 500 billion yen ($4.5 billion) on sales of 8.6 trillion yen through next March, the Tokyo-based company said. The prior forecast called for 480 billion yen and 8.3 trillion yen. Sony cited higher-than-anticipated game sales for the revenue revision, while the recent market debut of the music-streaming service added cash to the bottom line.

Continue Reading at Bloomberg.com

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