10 May 2022
Sony Announces Share Buyback following Earnings Miss
The Index Today
Sony Group Corp. revealed that it would repurchase its shares worth up to 200 billion yen ($1.5 billion), after posting earnings that fell short of market estimates.
According to Bloomberg News, the entertainment conglomerate reported an EBIT of 138.6 billion yen for the fourth quarter, missing the unanimous market estimate of 148.5 billion yen. Additionally, the company’s operating profit of 1.16 trillion for the present financial year also falls short of the prediction of 1.2 trillion yen.
Sony’s PlayStation 5 console maintained a declining streak due to supply woes stemming from parts scarcity and logistics rupture. Although the company remains optimistic about the PS5’s return to being the fastest-selling gaming console, NPD Group Inc. revealed that Microsoft’s Xbox has begun to outperform the PlayStation, reported Bloomberg News.
Damian Thong, an analyst at Macquarie Capital Securities, said, “We expect Sony to accelerate the PlayStation 5’s production volume in this fiscal year to recapture the ground, though at the cost of pressure on profit margins.”