Sony (SNE) to Report Q1 Earnings: What's in the Offing?

Sony Corporation SNE is slated to report first-quarter fiscal 2020 results on Aug 4, before the opening bell. In the March-end quarter, the company reported a negative earnings surprise of 70%. The bottom line lagged the Zacks Consensus Estimate by 21 cents.

The Japan-based electronics and media company’s performance is expected to have been impacted by economic disruptions stemming from the COVID-19 crisis. Let’s discuss the factors that are likely to get reflected in the upcoming quarterly announcement.

Factors at Play

During the quarter under review, Sony Corporation of America, a wholly-owned subsidiary of Sony, acquired a 4.98% stake in Bilibili Inc. — a leading online entertainment platform for young generations in China — for nearly $400 million. Also, Sony AI and avatarin of ANA Group joined forces to jointly develop next-generation remote control robots by combining the AI and robotics technology of Sony AI with avatarin’s remote control robot technology.

Sony introduced two new models of short-wavelength infrared image sensors for industrial equipment. The company released two models of intelligent vision sensors, the first image sensors in the world to be equipped with AI processing functionality.

Sony Semiconductor Solutions partnered with Microsoft to create solutions that make AI-powered smart cameras and video analytics easier to access for their mutual customers. Such developments are likely to have had a positive impact on Sony’s fiscal first-quarter top line.

For the June-end quarter, the Zacks Consensus Estimate for adjusted earnings per share is pegged at 44 cents, which calls for a decline of 59.3% from the prior-year quarter’s reported figure.

What Our Model Says

Our 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’s exactly the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: Sony’s Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is +40.91% as the former is pegged at 62 cents and the latter at 44 cents.

Sony Corporation Price and EPS Surprise

Sony Corporation Price and EPS Surprise

Sony Corporation price-eps-surprise | Sony Corporation Quote

Zacks Rank: Sony carries a Zacks Rank #2, at present.

Other Stocks to Consider

Here are some other companies that you may want to consider as our model shows that these too have the right combination of elements to post an earnings beat this quarter.

AMETEK, Inc. AME is slated to release second-quarter 2020 results on Aug 4. It has an Earnings ESP of +3.96% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

JELD-WEN Holding, Inc. JELD is scheduled to release second-quarter 2020 results on Aug 4. The company has an Earnings ESP of +10.09% and a Zacks Rank #2.

WEC Energy Group, Inc. WEC has an Earnings ESP of +0.96% and carries a Zacks Rank of 2. The company is set to report second-quarter 2020 results on Aug 4.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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