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Sony Stock Rises on Strong Profit, Buyback Plan, But Firm Warns of Tariffs Hit
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U.S.-listed shares of Sony Group ( SONY ) are surging 5% in premarket trading Wednesday as it reported better-than-estimated quarterly profit and issued a buyback plan, although the Japanese company expects full-year earnings to take a hit because of tariffs.
The electronics and entertainment giant posed fiscal 2024 fourth-quarter earnings per share (EPS) of 32.63 yen ($0.22), easily beating consensus estimates from Visible Alpha of 24.81 yen. Revenue dropped 24% year-over-year to 2.63 trillion yen ($18.01 billion), missing estimates of 3.00 trillion yen.
Sony said it plans to buy back up to 250 billion yen ($1.71 billion) worth of shares over the next year.
Tariffs Seen Weighing on Operating Income
However, Sony said it expects tariffs will lower fiscal 2025 operating income by 100 billion yen ($685.3 million) to 1.28 trillion yen. The company sees full-year net income dropping 13% year-over-year to 930 billion yen ($6.37 billion) after factoring in tariff impacts.
Sony said last month it had raised PlayStation 5 prices in international markets including Europe, Australia, and New Zealand, citing a "challenging economic environment, including high inflation and fluctuating exchange rates."
U.S.-listed shares of Sony Group have advanced 16% so far this year entering Wednesday.
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