Sony Group Corp Hits Record Revenue, Bolstered by PlayStation 5 Sales and Chip Division

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In the fourth quarter, Parallel Advisors LLC reduced its position in Sony Group Co. (NYSE:SONY) by 23.6%, selling 1,792 shares. Other hedge funds and institutional investors have also recently made adjustments to their stakes in SONY. These investors now own 7.74% of the company's stock. Analysts have given the company's stock an average rating of "Hold" and an average target price of $115.00.

Sony Group's stock (NYSE:SONY) opened at $95.09 on Friday, with a market capitalization of $117.34 billion. The company reported $1.87 earnings per share for the quarter, surpassing the consensus estimate of $1.40. Analysts expect Sony Group Co. to post 5.64 EPS for the current year.

The company's diverse portfolio includes the development, design, manufacture, and sale of electronic equipment, instruments, devices, game consoles, and software for various markets. On Friday, Sony posted record annual operating revenue, driven by its chip division and the sale of its flagship PlayStation 5 gaming console.

Sony reported a 35% year-on-year rise in revenue for the March quarter at 3.06 trillion Japanese yen ($22.7 billion), compared to the expected 2.92 trillion yen. However, operating profit saw a 7% year-on-year fall at 128.5 billion Japanese yen, versus the expected 124.34 billion yen. The company exceeded its own forecast for the full fiscal year ending in March, with a record operating profit of 1.21 trillion yen.

For the current fiscal year ending in March 2024, Sony forecasted sales of 11.5 trillion yen, with operating profit expected to reach 1.17 trillion yen, down 3% year-on-year. PlayStation 5 sales hit a record 19.1 million units, up from 11.5 million units in the previous fiscal year. Sony's gaming division was the most significant contributor to its revenue, with 3.64 trillion yen, up 33% year-on-year.

The company is optimistic about its PlayStation VR 2, a virtual reality gaming headset, which is expected to boost sales. Sony aims to sell 25 million PS5 units in the current financial year, which would set a new record for the console. The company faces competition from Nintendo's Switch console and Microsoft's Xbox.

Sony's image sensor chips, used in smartphones and other camera products, saw profits rise 36% year-on-year to 212.2 billion yen. However, a decrease in demand for image sensors, particularly from Chinese smartphone manufacturers, is expected to result in a 5.7% fall in operating profit for the current fiscal year. Meanwhile, the company's music publishing business, which includes artists like Beyoncé and Adele, saw profits increase by 24.7% year-on-year to 263.1 billion yen.