Tech and entertainment conglomerate Sony (SONY 1.32%) hasn't been considered a major player in either industry for decades. But you wouldn't know that from its stock's performance on Friday. On some quite positive company news, it was a hot item among investors, so much so that it closed the day 9% higher in price. That absolutely crushed the performance of the S&P 500 index, which inched up 0.3%.
Sales bumped higher and net income surged
The good news was nothing less than Sony's fiscal second quarter of 2024 earnings report, which was released well before U.S. market open Friday.
In it, Sony revealed that total sales were 2.91 trillion yen ($19 billion), a 3% year-over-year increase. This was helped by the performance of the game and network services unit, home to the company's popular video game platform PlayStation. The division more than doubled its sales year over year; they came in at 1.07 trillion yen ($7 billion) for the quarter. The smaller imaging and sensing solutions business also saw a large gain (129%).
As for net income, this increased far more robustly than overall sales. It surged 69% higher to 338.5 billion yen ($2.2 billion).
A 100-billion-yen guidance boost
Sony lifted its sales guidance for the entirety of 2024. Management now believes this line item will be 100 billion yen ($6.5 billion) higher than previously expected. The new estimate is slightly over 12.7 trillion yen ($83 billion). The company left its net income forecast unchanged at 980 billion yen ($6.4 billion).
The storied Japanese conglomerate surely has momentum on its side. It recently introduced a souped-up version of the latest PlayStation, one reason its sales in the game and network services business rose so sharply. Calendar 2025 is shaping up to be a fine, busy year for the video game industry, with new platforms being rolled out in addition to fresh titles in flagship series such as Take-Two Interactive's Grand Theft Auto.
