04. Sony Group Corporation (NYSE:SONY)
Number of Hedge Fund Holders: 29
At number five on our list of ten best consumer electonics stocks to buy stands Sony Group Corporation (NYSE:SONY). Sony Group Corporation (NYSE:SONY), a global leader in consumer electronics, develops and sells products across a variety of markets, including gaming consoles, televisions, and mobile devices. The company is known for its PlayStation gaming consoles and network services related to game and video content. Sony also offers a range of electronic equipment such as televisions, video and sound products, and digital cameras. In addition, Sony Group Corporation (NYSE:SONY) produces and distributes recorded music, live-action films, and animated series. Established in 1946 and headquartered in Tokyo, Japan, Sony Group Corporation (NYSE:SONY) remains a dominant force in both consumer electronics and entertainment industries worldwide.
Sony Group Corporation (NYSE:SONY) posted strong Q1 2024 results, surpassing earnings expectations and demonstrating robust growth across several key business segments. The company reported earnings per share (EPS) of $1.22, beating analysts’ expectations of $1.11, reflecting its strong fundamentals and operational efficiency. Total consolidated sales for the quarter increased by 12% year-on-year to 2.574 trillion yen, driven by favorable foreign exchange rates and increased sales in key segments such as music, gaming, and image sensors.
One of the highlights of the earnings call was the company’s upward revision of its full-year financial forecasts. Consolidated sales for FY 2024 are expected to increase by 2% to 12.610 trillion yen, with operating income projected to reach 1.310 trillion yen, a 35 billion yen increase from the previous forecast. Additionally, net income is forecasted to grow by 55 billion yen to 980 billion yen, indicating strong profitability across Sony’s diverse portfolio. The gaming and network services (G&NS) segment, a core driver of Sony’s revenue, saw a 12% year-on-year increase in sales to 864.9 billion yen, with operating income growing by 16 billion yen to 65.2 billion yen. This was fueled by increased sales of first-party software and the expanding PlayStation 5 user base, which reached 116 million monthly active users, the highest ever recorded. Sony Group Corporation (NYSE:SONY) strategic focus on premium services and higher average revenue per user (ARPU) for PlayStation Plus contributed to these impressive results.
In the imaging and sensing solutions (I&SS) segment, Sony Group Corporation (NYSE:SONY) experienced a 21% year-on-year sales growth, primarily due to strong demand for image sensors used in mobile devices. This growth trend is expected to continue, particularly in high-end smartphone markets like China, where larger sensors are gaining popularity. Overall, Sony Group Corporation (NYSE:SONY) strong financial performance, diversified revenue streams, and prudent management of its core businesses make it a compelling stock for investors looking for exposure to the consumer electronics sector. With continued growth in gaming, music, and image sensors, Sony is well-positioned to deliver solid returns moving forward.
