No products in the cart.

Sony Stock Gains 6 percent on Stock Buyback and Stock Split Announcement

Sony’s (NYSE:SONY) shares rose more than 6% yesterday following the announcement of a significant stock buyback and a stock split, which helped to mitigate the impact of disappointing annual earnings and lukewarm guidance.
Sony plans to repurchase 250 billion yen ($1.6 billion) of its own shares and will implement a five-for-one stock split. This announcement comes as the entertainment and electronics giant reported a 7% decrease in operating profit, attributed largely to poor performance in its life insurance division, which it intends to spin off in 2025.
The company’s earnings were further impacted by a downturn in the gaming industry, which is significant given that video games account for about a quarter of Sony’s total revenue. As the PlayStation 5 enters its fourth year, it is expected to experience slower sales. However, the anticipated decline in PS5 sales could reduce hardware losses associated with the console, leading Sony to project a 7% increase in profits from this adjustment. Additionally, Sony anticipates a 40% increase in profits from its chips business by fiscal 2025.

Subscribe to get Latest News

Latest Articles

More like this