an. 31 (Bloomberg) -- Sony Corp., the world's second- largest maker of consumer electronics, reported record quarterly earnings after the PlayStation 3 unit turned profitable.
Net income rose 25 percent to 200.2 billion yen ($1.9 billion) in the third quarter ended Dec. 31, from 159.9 billion yen a year earlier, Tokyo-based Sony said today in a statement. Sales gained 9.6 percent to 2.86 trillion yen.
The company raised its full-year net income forecast by 3 percent to 340 billion yen after the games business made money. Sony lowered its annual operating profit target to 410 billion yen from the company's previous 450 billion yen estimate. The annual sales target was left unchanged.
The company was projected to report third-quarter net income of 190.4 billion yen, according to the median estimate of six analysts surveyed by Bloomberg. Sales exceeded the 2.75 trillion yen median estimated in the survey.
Sony Posts Record Quarterly Profit on Games Division (Update1)
Sony has fallen 16 percent on the Tokyo Stock Exchange this year as concern over the stronger yen drove down shares of Japanese electronics makers. Matsushita Electric Industrial Co., the world's largest maker of consumer electronics, has dropped 2.8 percent. Nintendo Co., maker of the top-selling Wii game console, has slid 21 percent after doubling in each of the past two years.
To contact the reporter on this story: Hiroshi Suzuki in Tokyo at Hsuzuki5@bloomberg.net
I am in at 36 on this stock anyways. We are both up tonight (all though 7974 was up 5%) do we have to bash each other. Lets just get along. Right now all of the game systems are profitable. You are a Sony long that is fine. Like I said Sony is not really Nintendo's competitor. I think in some cases the Wii and another console are complimentary goods. For example..
I bought an xbox360 (for Halo 3). That means my wife gets a Wii. Of course I wll play both, but she plays Halo some.
There was also an example on this very board. A basher posted that the Wii got them back into video games and the 360 showed them what video games could be.
Just something to think about.
I also started my position at 36 after playing with my son's WII. It has all the drama of roller coster ride video game and when you take the big drops you really know it can power up to the next peak on its financials and solid long term thinking of its management. It is my largest position so it is a pumping ride.
you say sell because of recent share prices of SNE and NTDOY? If NTDOY continues to grown through 2008, the recent sell off will have been a buying opportunity. If you transpose the Nikkei chart over NTDOY you can see they correlate strongly. Thus, if the recession fears abate with the rate cuts and stimulus, NTDOY will once again gain strength.
As I've noted on this board before, NTDOY has an incredibly reasonable PE for the growth of the business. If you want to bash something that is in silly world, go to solar or ag.
There are much better bets than to bash an extremely healthy company that is less than half way through its current sector up cycle ...
Compare Sony to Ntdoy over the past year.
What's your point little man?
Are you still upset the PS3 is inferior to an old Nintendo with a motion sensor?. . .don't have to prove anything. . .the sales do.
Make sure you study hard in Algebra this year.
Glad to see the grammar and spelling coach is off the bench. Anything meaningful you would like to add or will you simply whine about misspelled words on a message board?. . .really moron?