Tech
Sony shares tumble on weaker-than-expected annual outlook
Sony Group Corp.’s (6758.T) annual profit projection missed market expectations on Monday, sending its shares down 4.8%.
Music and microprocessor units helped the business announce a record operational profit for the year ended March 2023 on Friday.
As it expects a slow videogame unit recovery, it projected a 3.2% profit decline to 1.17 trillion yen ($8.55 billion) for the current business year, missing analysts’ average estimate of 1.275 trillion.
Sony’s view “is overly conservative,” according to Jefferies analyst Atul Goyal, and its PlayStation 5 (PS5) game systems and software are likely to profit from pent-up demand.
On Friday, Sony President Hiroki Totoki stated the business could finally deliver PS5 consoles without delay due to supply chain issues during the COVID-19 epidemic.
The corporation hopes to sell 25 million PS5s by March.