SONY Gears Up to Report Q3 Earnings: Is a Beat in the Cards?

Sony Group Corporation SONY is scheduled to report third-quarter fiscal 2024 earnings on Feb. 13.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.The Zacks Consensus Estimate for earnings is pegged at 29 cents per share, indicating a decline of 27.5% from the year-ago reported figure. The consensus estimate for revenues is pegged at $24.32 billion, implying a fall of 4.2% from the prior-year actuals.The company’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, with the average surprise being 22.8%. In the past year, the stock has gained 16.6% compared with the Audio Video Production industry’s rise of 14.7%.Image Source: Zacks Investment ResearchFactors to NoteStrong growth potential across the Game & Network Services (GN&S), Music, Entertainment, Technology & Services (ET&S) and Imaging & Sensing Solutions (I&SS) segments is likely to have cushioned Sony’s top-line performance.The G&NS division is likely to have been driven by forex tailwinds, higher sales from network services, notably PlayStation Plus and rising sales of non-first-party titles, including add-on content, despite a fall in hardware sales. In September 2024, active users account of PlayStation was up 8% year on year to 116 million. Total playtime for PlayStation users also increased 14% year on year. Sony’s Music division is fueled by a surge in digital streaming. Increasing revenues from live events, merchandising and licensing in Recorded Music, along with rising streaming income in both Recorded Music and Music Publishing, are expected to have driven higher sales in the to-be-reported quarter. Also, favorable foreign exchange rates are expected to have further strengthened its performance.The growth of Crunchyroll's subscriber base and strong sales of image sensors for mobile devices are likely to have driven the Pictures and I&SS segments, respectively. Synergies from acquisitions are expected to have supported the company’s growth trajectory in the third quarter.Sony Corporation Price and EPS Surprise Sony Corporation price-eps-surprise | Sony Corporation QuoteHowever, a continued downtrend in the Financial Services business is likely to have impeded Sony’s performance in the quarter under discussion. Stiff competition and forex volatility remain additional challenges.Key Recent HighlightsIn January 2025, Sony launched XYN (/zin/), a new solution combining software and hardware to simplify 3D content creation. Using Sony’s imaging, sensing and display tech, XYN captures real-world objects, motion and scenes, recreating them in virtual environments. It supports various third-party tools for flexible workflows, catering to industries like film, animation, gaming and design. XYN aims to make spatial content creation easier and more efficient, helping creators shape the future of 3D content.In December 2024, Sony announced that it acquired 12,054,100 new KADOKAWA shares for ¥50 billion. With the purchase of these shares, Sony is now KADOKAWA's largest shareholder, with a 10% stake, including the shares the company earlier acquired in February 2021.In October 2024, Sony acquired KinaTrax, Inc. to expand its sports data business into player performance. KinaTrax specializes in motion capture technology for sports. This tech is capable of assembling in-game biomechanical performance data on athletes. KinaTrax will be integrated with Sony’s Hawk-Eye Innovations Limited, the mainstay of Sony’s sports business.What Our Model SaysOur proven model predicts an earnings beat for Sony this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is exactly the case here.Earnings ESP: SONY has an Earnings ESP of +4.65%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Zacks Rank: SONY currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.Other Stocks With Favorable CombinationHere are some other stocks you may consider, as our model shows that these, too, have the right combination of elements to beat on earnings this season.Airbnb ABNB has an Earnings ESP of +25.59% and a Zacks Rank #3 at present. Airbnb is set to report fourth-quarter 2024 results on Feb. 13. The Zacks Consensus Estimate for ABNB’s to-be-reported quarter’s earnings and revenues is pegged at 63 cents per share and $2.42 billion, respectively. ABNB shares have lost 12% in the trailing 12 months.Twilio Inc. TWLO is set to release quarterly numbers on Feb. 13. It has an Earnings ESP of +3.28% and sports a Zacks Rank #1. The Zacks Consensus Estimate for TWLO’s to-be-reported quarter’s earnings and revenues is pegged at $1.02 per share and $1.17 billion, respectively. TWLO shares have gained 102.7% in the trailing 12 months.Watsco, Inc. WSO currently has an Earnings ESP of +0.94% and a Zacks Rank #2. WSO is scheduled to report quarterly earnings on Feb.18. The Zacks Consensus Estimate for WSO to-be-reported quarter’s earnings and revenues is pegged at $2.13 per share and $1.65 billion, respectively. Shares of WSO have gained 13.4% in the past year.WSO’s shares are up 13.5% in the trailing 12 months. Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Watsco, Inc. (WSO): Free Stock Analysis Report Twilio Inc. (TWLO): Free Stock Analysis Report Airbnb, Inc. (ABNB): Free Stock Analysis Report Sony Corporation (SONY): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks