Sony surprises with record profit as image sensor demand offsets weak gaming

Sony surprises with record profit as image sensor demand offsets weak gaming

Japan’s Sony Corp surprised the market by reporting on Tuesday a record first-quarter operating profit despite the slowing gaming business, as strong demand for multiple-lens camera systems for smartphones boosted sales of image sensors, reports Trend referring to Reuters.

Sony is benefitting from sales of more powerful smartphones at customers including Huawei Technologies, offsetting gaming weakness as its almost six-year old PlayStation 4 console nears the end of its life and the cost to develop a next-generation console rises.

“Our image sensor sales have been growing independently of the smartphone market growth” thanks to smartphone makers’ adoption of multiple-lens cameras and large-size image sensors, Chief Financial Officer Hiroki Totoki told an earnings briefing.

“Our production facilities have been operating at full capacity.”

The electronics firm posted an operating profit of 230.93 billion yen ($2.1 billion) for the April-June quarter, up 18.4% from a year earlier and overshooting a consensus estimate of 173.61 billion yen from eight analysts compiled by Refinitiv.

The company, which has had two straight years of record profits, maintained its profit forecast for the year ending March at 810 billion yen.

The imaging and sensing business, which includes image sensors, posted a profit of 49.5 billion yen, up from 29.1 billion yen a year earlier, comfortably offsetting a 9.6 billion drop in profit at the gaming business, its biggest profit earner.

But some analysts say Sony is likely to be susceptible to the situation at Huawei, a major image senor client which Washington placed on a blacklist in mid-May, even though the Chinese company said smartphone shipments rose 24% in the first half of the year.

Jefferies estimates Huawei accounted for 15%-20% of Sony’s image sensor revenue for the previous year.

“Concerns about trade-related issues remain for the second half (of the financial year),” Totoki said at the briefing, adding that Sony will closely monitor the situation during the July-September quarter to judge the impact on annual earnings.

Daniel Loeb’s activist hedge fund Third Point LLC has called on Sony to spin off the imaging and sensing business and position itself as an entertainment company.

Totoki said the company is always open to proposals from shareholders, but also reiterated that the image sensor business was one of the pillars in the company’s growth strategy.

He added that the annual profit forecasts have not factored in a potential fourth tranche of tariffs on $300 billion worth of goods that Washington has held off launching, a measure that would see almost all Chinese imports to the United States impacted by tariffs.

The fourth tranche, if implemented, would affect its gaming consoles, cameras, audio devices and projects, he said.

Sony shares closed almost flat on Tuesday before the results were released, while the broader market .N225 climbed 0.4%.

The stock hit 11-year highs in September but has been battered this year by worries that profit at the gaming business has peaked.

Completion period of logistics center in Turkey’s Kars province revealed
Completion period of logistics center in Turkey’s Kars province revealed
Azerbaijan’s Sumgayit city opens tender to repair roads, streets
Azerbaijan’s Sumgayit city opens tender to repair roads, streets
World Bank to help Uzbekistan increase resilience to earthquakes
World Bank to help Uzbekistan increase resilience to earthquakes
Loading Bars
Latest
Uzbekistan's Commodity Exchange reveals its gold trade for January 2020
Iran discloses amount of funds allocated for import of products
Iran's export of dates down
Agricultural insurance up in Iran's Parsabad county
President of Uzbekistan to visit Turkey
Iran discloses amount of investments made in Maku Free Trade Zone
Azerbaijani CEC makes statement on halting election results at some polling stations
Azerbaijani insurance company discloses funds paid for treatment of cancer patients in 2019
Volume of insurance premiums in Azerbaijan in relation to country’s GDP revealed
Azerbaijan's ART Group Logistic talks plans for 2020
Georgian company producing dried fruits to expand production
Gunmen kill 24 in attack on Burkina Faso church
Turkmenistan, United Nations discuss joint action plan
IRICA confiscates large consignment of smuggled cigarettes
Make more purchases at “Park Bulvar” and win a ticket for two to Europe!
Kazakhstan increases production of silver
Export of steel from Turkey to China increases
Iran's decision to release imported autos needs to be reviewed
Editor-in-chief: President Ilham Aliyev puzzles Pashinyan before OSCE MG co-chairs
Bakcell supports int’l conference (PHOTO)
Azerbaijan’s CEC annuls parliamentary election results on 7 precincts
Iran hands over project related to oil field to Petropars company
Kazakhstan's Aviation Administration to issue report on Bek Air inspection results
Production of Iran's South Pars Gas Complex up
Completion period of logistics center in Turkey’s Kars province revealed
Subsidiary of Azerbaijan Railways starts co-op with Rail Cargo Group Hungary
MP: Azerbaijani president destroyed Armenian PM’s points by facts and arguments
Number of cars transported via Turkish ports in Jan. 2020 disclosed
Structural changes occur in Compulsory Insurance Bureau of Azerbaijan
Kazakhstan prohibits poultry goods import from Ukraine due to bird flu outbreak
Major part of Iran’s export market accounts for petrochemical industry
Expert: Azerbaijani President showed high level of political, diplomatic experience
Mexican Grupo Bimbo to establish its JV in Kazakhstan
Steel export from Turkey to Azerbaijan drops
Irish airline names Georgian capital best travel destination of year
Hungary eyes to import gas from Azerbaijan in several years
Alibaba offers $2.86 billion in loans to firms hit by coronavirus outbreak
Georgia to set up Digital Management Agency
Turkmenistan to develop co-op with Russia's Tatarstan
Baku Network: Pashinyan again resorted to false assertion of Armenian propaganda on Karabakh
Uzbekistan’s UzAuto Motors to begin selling cars under new brand
Russian analyst: Azerbaijani president convincingly defeated Pashinyan with facts on Karabakh
Number of Kazakh citizens buying real estate in Turkey increases
Coronavirus could lead to a drastic reduction in demand estimates, says IEA
IEA: Gas market to remain well supplied as sources further diversify and compete
Apple warns virus hitting Israel's iPhone inventory
Photographer of Azerbaijan Airlines magazine becomes AIPS award winner (PHOTO)
Azerbaijan’s Sumgayit city opens tender to repair roads, streets
Number of Turkish citizens looking for job in Georgia increases
Larijani: Iranian businessmen eager to cooperate in Syria reconstruction
Beijing to fast-track new mask factory in virus fight
IEA: Southern Gas Corridor to contribute to further enhancing competitiveness in European gas market
China may delay key parliament, political panel meetings
Kazakhstan's KazMunayGas to hold negotiations on participation in Kalamkas Sea dev't
World Bank to help Uzbekistan increase resilience to earthquakes
Cargo transshipment from Algeria through Turkish ports disclosed
Turkmenistan reveals expected figure of foreign trade within 2019-2025
Iran finds way to substitute Samsung, LG goods on domestic market
Zenith Energy reveals volume of sales from Azerbaijani assets
Demand at auction of Azerbaijan's Central Bank considerably exceeds supply
Zenith Energy reduces its debt position
Iran's auto production significantly up
Kazakhstan significantly increases salt export volume
Uzbek commodity exchange increases cotton exports
Turkmenistan discloses volume of electricity generation
Oil products to be put up for sale at Iran Energy Exchange
Fitch affirms Georgia at "BB", Outlook Stable
SOCAR Ukraine Trading House wins court case against Ukrainian Energy Exchange
Norway's 2020 headline inflation seen easing to 1.5%
Baku Higher Oil School starts cooperating with Tallinn University of Technology (PHOTO)
Azerbaijani MP: President Ilham Aliyev exposed Pashinyan's lies with facts and logic
Agricultural exports of Iran's East Azerbaijan province up
Ranking of Azerbaijani banks in terms of loan portfolio
Iran starts issuing permits for exploration of hydrocarbon resouces
Wheat production to grow in Iran’s Khuzestan province
Kazakh national postal service operator to buy accumulators via tender
Turkey’s export of cement to Azerbaijan increases
Number of Turkish citizens looking for job in Uzbekistan drops
Iran discloses revenues from exporting medicinal plants
Number of subscribers of Georgian electricity distribution company increases
Turkey - Kyrgyzstan trade up in 2019
Iranian Energy Exchange discloses volume of buying, selling goods
Kazakhstan's private companies promoting renewable energy dev't in Pavlodar
Moody’s analyzes Azerbaijan’s potential economic risks
Iran reveals volume of daily car production
Azerbaijani MP: President Ilham Aliyev put Pashinyan in hopeless situation
Ilham Aliyev proved to everyone: Nagorno-Karabakh belongs to Azerbaijan - MP
Weekly prices on Azerbaijan's oil for Feb. 10-14
UK buys diesel fuel in Turkmenistan
Turkey - Belarus trade turnover grows
Major warehouse for storing food products built in Baku
Ukrainian company may take part in nuclear power plant building in Uzbekistan
Number of Turkey's job seekers in Russia sharply drops
China approves imports of all U.S. poultry, poultry products
Turkmengas State Concern opens tender to buy various equipment
Turkmen oil concern opens tender for equipment supply
S&P warns coronavirus travel restrictions could hurt Dubai's hospitality industry
Dubai's DP World to delist, return to full state ownership
Iranian currency rates for Feb. 17
Azerbaijani oil prices on Feb. 14
All news