This entertainment company beat analysts’ estimates by $0.12 last quarter, and Wall Street is forecasting growth north of 70% annually over the next five years for the company.
Sony Corporation (SNE)
From AlphaProfit Sector Investors’ Newsletter
Japan-based entertainment giant Sony Corporation (SNE) is on track to stage a sizeable rebound in profits this fiscal year. The strong performance of Sony’s image sensor, game console, and music streaming businesses are driving profit growth.
The turnaround is also aided by Sony’s efforts to focus on more profitable business. Sony has set return targets for each business aimed at achieving 10% corporate return on equity this year.
Analysts currently expect EPS to rise to $2.21 per ADR this year, up from just $0.51 per ADR last year. Appealing to turnaround investors, Sony shares trade at 16.5X-forecasted EPS. (Next earnings: Late October)
Sam Subramanian, PhD, AlphaProfit Sector Investors’ Newsletter, www.alphaprofit.com, 281-565-6963, October 2017