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Sony's Q1 Earnings on the Horizon: What Investors Should Know
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Key Takeaways
{\"0\":\"Sony will report Q1 fiscal 2025 results on Aug. 7, with EPS estimated at 24 cents, flat year over year.\",\"1\":\"Growth in PS5 user engagement and network services is driving long-term momentum for the G&NS segment.\",\"2\":\"Music, anime and film units gain from streaming, acquisitions and IP expansion despite global competition.\"}
Sony Group Corporation ((SONY - Free Report) ) is scheduled to report first-quarter fiscal 2025 earnings on Aug. 7.
The Zacks Consensus Estimate for earnings has been revised up by a penny in the past 30 days and is currently pegged at 24 cents per share, flat year over year.
The company’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, with the average surprise being 40.8%. In the past year, the stock has gained 49.1% compared with the Zacks Audio Video Production industry’s rise of 44.2%.
Image Source: Zacks Investment Research
Factors to Note
Sony’s ability to capitalize on the evolving entertainment landscape is likely to have contributed to its strong performance in the fiscal first quarter. The company continues to navigate both challenges and opportunities across its diverse business portfolio. From its PlayStation gaming division and image sensors to music, movies and financial services, Sony’s varied exposure provides it with a unique growth profile, but also exposes it to volatile market conditions.
It is focused on expanding its intellectual property across business segments through strategic investments in content, music catalogs, anime and innovative content creation technologies. In fiscal 2024, its entertainment division generated nearly 60% of total revenue, highlighting its resilience even during economic challenges. Building on this momentum, Sony is advancing its long-term Creative Entertainment Vision to deliver Kando and “Creating Infinite Realities” by uniting creators, partners, employees and its diverse businesses.
The G&NS segment remains on a steady path, driven by the ongoing growth of PlayStation 5 in both active users and user spending. Sony aims to build on this momentum to support long-term, profitable growth and to invest in shaping the future of gaming. The company anticipates consistent growth in revenues and profits from network services as the PS5 user base expands. Key objectives include boosting revenues from PlayStation Plus and maximizing PlayStation Store earnings through personalization and pricing strategies.
Sony’s Music business has been a steady growth driver for the company over the years. It aims to grow its Music business by expanding into emerging markets like Latin America, India and parts of Europe, where streaming is on the rise. It plans to grow both organically and through acquisitions, while investing in music catalogs and talent discovery. Sony is also strengthening ties with local artists and labels, expanding IP through biopics, documentaries and live events, and exploring AI to add value while protecting artists' rights.
The Pictures segment is benefiting from strong box office performance, increased revenue from Crunchyroll, driven by paid subscriptions and synergies following the acquisition of Alamo Drafthouse Cinema. The I&SS business is likely to have been supported by robust sales of image sensors for mobile devices. The anime market is expected to grow steadily, with a high single-digit annual growth rate from 2023 to 2030. Crunchyroll’s core anime streaming business is projected to grow even faster, at more than 10% annually by 2030.
However, Sony faces strong global competition across its product lines, including TVs, gaming and smartphones. Its success depends on launching products that match customer demand. With a large share of revenue from emerging markets, Sony is exposed to forex fluctuations, especially in the yen, U.S. dollar, and euro, which impact both sales and production costs.
The situation regarding additional U.S. tariffs remains very unstable and unpredictable. The G&NS, ET&S and I&SS segments, which are likely to be directly affected, are already experiencing difficulties from the tariffs currently in place. While efforts are being made to respond, these segments face significant pressure and must now prepare for multiple uncertain and potentially disruptive scenarios that could compromise operational stability and strategic planning.
Key Recent Highlight
In July 2025, Sony and Bandai Namco announced a strategic business alliance. As part of the deal, Sony will buy 16 million Bandai Namco shares for about 68 billion yen, giving it a 2.5% stake in the company. The two companies will work together to grow global fan communities, especially around anime and manga. They aim to combine their strengths to create new, engaging experiences and boost the value of their content.
What Our Model Says
Our proven model does not predict an earnings beat for Sony this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. That is not the case here.
Earnings ESP: SONY has an Earnings ESP of -10.64%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are three stocks you may want to consider, as our model shows that these have the right elements to post an earnings beat in this reporting cycle.
Emerson Electric Co. ((EMR - Free Report) ), expected to release earnings on Aug. 6, currently has an Earnings ESP of +0.39% and a Zacks Rank of 3.
The consensus estimate for Emerson Electric’s earnings for the third quarter of fiscal 2025 is pegged at $1.51 per share, indicating year-over-year growth of 5.6%. EMR has a trailing four-quarter average surprise of 3.4%.
BCE Inc. ((BCE - Free Report) ) is expected to release earnings on Aug. 7, currently has an Earnings ESP of +0.97% and a Zacks Rank of 2.
The consensus estimate for BCE’s earnings for the second quarter of 2025 is pegged at 52 cents per share, indicating a year-over-year fall of 8.7%. BCE has a trailing four-quarter average surprise of 3.5%.
Watts Water ((WTS - Free Report) ) is expected to release earnings on Aug. 6, currently has an Earnings ESP of +0.86% and a Zacks Rank of 2.
The consensus estimate for WTS’ earnings for the second quarter of 2025 is pegged at $2.68 per share, indicating a year-over-year rise of 8.9%. WTS has a trailing four-quarter average surprise of 6.5%.
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Sony's Q1 Earnings on the Horizon: What Investors Should Know
Key Takeaways
Sony Group Corporation ((SONY - Free Report) ) is scheduled to report first-quarter fiscal 2025 earnings on Aug. 7.
The Zacks Consensus Estimate for earnings has been revised up by a penny in the past 30 days and is currently pegged at 24 cents per share, flat year over year.
The company’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, with the average surprise being 40.8%. In the past year, the stock has gained 49.1% compared with the Zacks Audio Video Production industry’s rise of 44.2%.
Image Source: Zacks Investment Research
Factors to Note
Sony’s ability to capitalize on the evolving entertainment landscape is likely to have contributed to its strong performance in the fiscal first quarter. The company continues to navigate both challenges and opportunities across its diverse business portfolio. From its PlayStation gaming division and image sensors to music, movies and financial services, Sony’s varied exposure provides it with a unique growth profile, but also exposes it to volatile market conditions.
It is focused on expanding its intellectual property across business segments through strategic investments in content, music catalogs, anime and innovative content creation technologies. In fiscal 2024, its entertainment division generated nearly 60% of total revenue, highlighting its resilience even during economic challenges. Building on this momentum, Sony is advancing its long-term Creative Entertainment Vision to deliver Kando and “Creating Infinite Realities” by uniting creators, partners, employees and its diverse businesses.
The G&NS segment remains on a steady path, driven by the ongoing growth of PlayStation 5 in both active users and user spending. Sony aims to build on this momentum to support long-term, profitable growth and to invest in shaping the future of gaming. The company anticipates consistent growth in revenues and profits from network services as the PS5 user base expands. Key objectives include boosting revenues from PlayStation Plus and maximizing PlayStation Store earnings through personalization and pricing strategies.
Sony’s Music business has been a steady growth driver for the company over the years. It aims to grow its Music business by expanding into emerging markets like Latin America, India and parts of Europe, where streaming is on the rise. It plans to grow both organically and through acquisitions, while investing in music catalogs and talent discovery. Sony is also strengthening ties with local artists and labels, expanding IP through biopics, documentaries and live events, and exploring AI to add value while protecting artists' rights.
Sony Corporation Price and EPS Surprise
Sony Corporation price-eps-surprise | Sony Corporation Quote
The Pictures segment is benefiting from strong box office performance, increased revenue from Crunchyroll, driven by paid subscriptions and synergies following the acquisition of Alamo Drafthouse Cinema. The I&SS business is likely to have been supported by robust sales of image sensors for mobile devices. The anime market is expected to grow steadily, with a high single-digit annual growth rate from 2023 to 2030. Crunchyroll’s core anime streaming business is projected to grow even faster, at more than 10% annually by 2030.
However, Sony faces strong global competition across its product lines, including TVs, gaming and smartphones. Its success depends on launching products that match customer demand. With a large share of revenue from emerging markets, Sony is exposed to forex fluctuations, especially in the yen, U.S. dollar, and euro, which impact both sales and production costs.
The situation regarding additional U.S. tariffs remains very unstable and unpredictable. The G&NS, ET&S and I&SS segments, which are likely to be directly affected, are already experiencing difficulties from the tariffs currently in place. While efforts are being made to respond, these segments face significant pressure and must now prepare for multiple uncertain and potentially disruptive scenarios that could compromise operational stability and strategic planning.
Key Recent Highlight
In July 2025, Sony and Bandai Namco announced a strategic business alliance. As part of the deal, Sony will buy 16 million Bandai Namco shares for about 68 billion yen, giving it a 2.5% stake in the company. The two companies will work together to grow global fan communities, especially around anime and manga. They aim to combine their strengths to create new, engaging experiences and boost the value of their content.
What Our Model Says
Our proven model does not predict an earnings beat for Sony this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. That is not the case here.
Earnings ESP: SONY has an Earnings ESP of -10.64%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: SONY currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks With the Favorable Combination
Here are three stocks you may want to consider, as our model shows that these have the right elements to post an earnings beat in this reporting cycle.
Emerson Electric Co. ((EMR - Free Report) ), expected to release earnings on Aug. 6, currently has an Earnings ESP of +0.39% and a Zacks Rank of 3.
The consensus estimate for Emerson Electric’s earnings for the third quarter of fiscal 2025 is pegged at $1.51 per share, indicating year-over-year growth of 5.6%. EMR has a trailing four-quarter average surprise of 3.4%.
BCE Inc. ((BCE - Free Report) ) is expected to release earnings on Aug. 7, currently has an Earnings ESP of +0.97% and a Zacks Rank of 2.
The consensus estimate for BCE’s earnings for the second quarter of 2025 is pegged at 52 cents per share, indicating a year-over-year fall of 8.7%. BCE has a trailing four-quarter average surprise of 3.5%.
Watts Water ((WTS - Free Report) ) is expected to release earnings on Aug. 6, currently has an Earnings ESP of +0.86% and a Zacks Rank of 2.
The consensus estimate for WTS’ earnings for the second quarter of 2025 is pegged at $2.68 per share, indicating a year-over-year rise of 8.9%. WTS has a trailing four-quarter average surprise of 6.5%.