As has become the ten-year tradition, prior to a next gen console arriving, there has to be a great effort put into fearmongering the rapid death of Sony is near.

While Sony missed analyst expectations, their revenues were up slightly from last year. The basic fact about the financials is Sony is staying about the same it has for the past few years. Not good for a company or its stock but no indication of some fanatics' wish for an immediate bankruptcy. It means Kaz the Janitor can mop up the mess left by Stringer the Hut, start getting rid of what doesn't make financial sense, get more products out of the lab and on to the shelves, streamline their mainstream but low profit lines. Kaz has only been on the job a few months and this quarterly report seems to be an early indicator he is going in the right direction.

Sony Increases Sales but Misses Revenue Estimate

Sony (NYSE: SNE ) reported earnings on Nov. 1. Here are the numbers you need to know.

The 10-second takeaway For the quarter ended Sep. 30 (Q2), Sony missed estimates on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded slightly and GAAP loss per share contracted.

Gross margins dropped, operating margins expanded, net margins expanded.

Revenue details Sony booked revenue of $20.60 billion. The six analysts polled by S&P Capital IQ anticipated revenue of $21.25 billion on the same basis. GAAP reported sales were 0.9% higher than the prior-year quarter's $20.43 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details EPS came in at -$0.20. The one earnings estimate compiled by S&P Capital IQ predicted $0.21 per share. GAAP EPS were -$0.20 for Q2 compared to -$0.35 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details For the quarter, gross margin was 22.5%, 130 basis points worse than the prior-year quarter. Operating margin was 2.1%, 30 basis points better than the prior-year quarter. Net margin was -1.0%, 70 basis points better than the prior-year quarter.

Looking ahead Next quarter's average estimate for revenue is $24.80 billion. On the bottom line, the average EPS estimate is $0.67.

Next year's average estimate for revenue is $83.77 billion. The average EPS estimate is $0.08.

Investor sentiment The stock has a two-star rating (out of five) at Motley Fool CAPS, with 1,197 members out of 1,692 rating the stock outperform, and 495 members rating it underperform. Among 369 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 224 give Sony a green thumbs-up, and 145 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Sony is hold, with an average price target of $12.69.
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