NYSE$SONY

Sony Group Corp.-ADR · Q1 2022 earnings

Q1 2022 earnings · · Before market open · Investor relations

Briefing

Sony reported solid Q1 FY21 results with higher revenue and profit driven by strong Music and EP&S segments, despite a decline in G&NS operating income.

Sony posted revenue of ¥2.26 trillion and net income of ¥211.8 billion for Q1 FY2021. Significant gains were seen in the Music and Electronics Products & Solutions segments, while Financial Services and G&NS posted weaker operating results. EPS grew to ¥169.22.

  • Revenue grew 15% YoY to ¥2.26 trillion
  • Net income increased to ¥211.8 billion from ¥193.6 billion
  • Music and EP&S segments drove revenue and profit growth
  • G&NS and Financial Services segments posted lower operating income

Headline financials

Total Revenue

¥20.6B

Previous: ¥2.26T-99.1%
EPS (adj)

¥0.31

Previous: ¥170.95-99.8%
Net Income

¥1.92B

Previous: ¥212B-99.1%
Operating Income

¥2.53B

Previous: ¥280B-99.1%
Gross Profit

¥706B

Previous: ¥620B+13.8%
R&D Expense

¥157B

Previous: ¥134B+17.5%

Revenue & EPS history

Sony · Revenue · Quarterly

¥20.6B

Q1 2022-99.1%vs Q1 2021
Beat estimate in 6 of 7 quarters(86%)
ActualEstimate

Revenue by segment

Sony · ¥17.1B total across 6 segments · Q1 2022

  • Game & Network Services
    ¥5.57B-99.1%
  • ET&S
    ¥5.21B-98.6%
  • Music
    ¥2.3B-98.7%
  • Imaging & Sensing
    ¥1.97B-99.0%
  • Pictures
    ¥1.85B-98.9%
  • All Other
    ¥199M-99.2%

Forward guidance

Sony expects FY21 to end with higher sales and operating income driven by strong performance in Music, Pictures, and EP&S. However, Financial Services is forecasted to see margin pressure.

Tailwinds

  • Upward revision in Music segment operating income forecast (+¥28B)
  • Strong Q1 performance in EP&S led to higher full-year guidance
  • Stable outlook for Pictures segment profitability
  • Solid recurring revenue from subscription streaming services
  • Favorable FX expected to benefit export-heavy segments

Headwinds

  • Decline in Financial Services revenue YoY
  • G&NS segment impacted by lower PS4 hardware sales and aggressive PS5 pricing
  • Lower-than-expected TV sales in EP&S
  • Increase in SG&A expenses across segments
  • Uncertainty in theatrical and TV production schedules due to COVID-19

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

+1.0%

Avg return

Earnings day

+1.0%

Avg return

5 days after

+1.0%

Avg return

30 days after

50%

27 / 54 earnings

Positive

+13.9%

Q4 2020

Best reaction

-7.8%

Q2 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026-0.3%-2.6%-10.5%
Q4 2023+2.9%-1.1%-3.7%
Q2 2023-7.8%-6.5%-6.2%
Q4 2022+5.8%+2.0%-4.3%
Q3 2022+9.7%+10.6%+24.4%
Q2 2022+0.8%-4.2%-11.4%
Q4 2021-2.1%-2.5%-12.5%
Q2 2021+0.5%-0.5%-2.5%
Q3 2021+2.0%+8.9%+7.1%
Q1 2022+0.0%-1.0%+4.4%
Q1 2021-1.5%+1.4%+2.7%
Q4 2020+13.9%+16.5%+4.9%
Q3 2020+10.7%+10.4%+21.4%
Q2 2020+0.9%-1.5%-4.8%
Q1 2020+0.4%-0.9%+7.7%
Q4 2019-0.3%-0.6%-10.0%
Q3 2019+0.8%+3.9%+7.2%
Q2 2019+4.6%+0.5%+3.7%
Q1 2019+0.3%+2.2%+3.6%
Q4 2018-7.6%-11.8%-4.4%
Q3 2018+1.0%+5.2%+1.7%
Q2 2018+3.2%+5.0%+8.3%
Q1 2018-6.8%-7.0%-7.5%
Q4 2017-0.5%+2.0%+1.1%
Q3 2017+3.8%+0.8%-0.3%
Q2 2017-0.5%-3.3%-2.5%
Q1 2017+0.5%+3.0%+8.5%
Q4 2016-0.8%-1.3%-1.2%
Q3 2016+0.0%-1.0%-4.1%
Q2 2016+1.2%+1.5%+0.9%
Q1 2016+2.9%+2.8%+7.9%
Q4 2015-0.9%
Q3 2015-2.1%
Q2 2015-2.9%
Q1 2015+0.0%
Q4 2014+9.4%
Q3 2014+4.8%
Q2 2014+0.0%
Q1 2014+0.6%
Q4 2013-1.2%
Q3 2013+5.9%
Q2 2013-0.2%
Q1 2013+5.7%
Q4 2012-0.7%
Q2 2012+3.4%
Q1 2012+0.7%
Q4 2011+1.8%
Q3 2011-1.4%
Q2 2011-3.3%
Q1 2011+0.0%
Q4 2010+0.0%
Q3 2010+0.0%
Q2 2010-5.4%
Q1 2010+0.0%
Q3 2009
Q4 2009

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