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Will Sony (SNE) Beat Earnings Despite Cyber Attack Woes? - Analyst Blog

Zacks Equity Research

Sony Corporation (SNE) is set to report third-quarter fiscal 2014 results on Feb 4. The company expects to report net loss of 230 billion yen in the quarter. 

Factors to Consider

Sony has been making headlines in past quarter for several events. In November, the internal data reservoir of Sony’s American subsidiary, Sony Pictures Entertainment, was hacked and valuable data was stolen. The U.S. Federal Bureau of Investigation named North Korea as its prime suspect in this hack as the attack was said to be strategized against the release of the movie The Interview that involves the fictional assassination of the dictator of North Korea – Kim Jong Un (read more: Is North Korea to Blame for Sony's Cyber Security Breach?).

With its tribulations not ceasing, Sony scrapped the release of this movie, as top theater chains of North America postponed the screening due to threats issue by the hackers (read more: Sony Scraps "The Interview" Release on Hackers' Threat). With regards to the cyber attack on Sony, President Obama ordered a series of economic sanctions on North Korea and issued an Executive Order regarding the same (read more: Sony's "The Interview": U.S. Lays Sanctions on North Korea).

Citing losses running into millions of dollars on the movie scrap, Sony tried to minimize the loss amount through the online release of the movie, which in turn, became the highest grossing online release of the year (read more: Sony's The Interview: Top Grossing Online Movie Release).

On the other hand, coming up with some positive news, Sony disclosed the huge success of PlayStation 4, with over 18.5 million units sold globally, as of Jan 4, 2015. Also, PlayStation Plus subscribers zoomed to 10.9 million during this time frame.

Sony currently carries a Zacks #3 (Hold).

Other Stocks to Consider

Some better-ranked stocks that are yet to report their earnings are:

Arch Capital Group Ltd. (ACGL), which carries a Zacks Rank #1 (Strong Buy), is expected to report its earnings on Feb 10.

Century Aluminum Co. (CENX) that carries a Zacks Rank #2 (Buy) is expected to report its earnings on Feb 19.

GoPro, Inc. (GPRO), which carries a Zacks Rank #2, is expected to report its earnings on Feb 5.


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