Sony's shares experienced a remarkable surge, rising by 9% on Friday.
Tech giant Sony (SONY 0.67%) might not have been a prominent figure in either industry for years, but you wouldn't guess that from its stock's behavior on Friday. The company was in high demand among investors due to some positive news, resulting in a 9% price surge at the end of the day. This significantly outperformed the 0.3% increase seen by the S&P 500 index.
Sales increased and net income skyrocketed
The positive news came in the form of Sony's fiscal second quarter of 2024 earnings report, which was released before the U.S. market opened on Friday.
The report showed that total sales reached 2.91 trillion yen ($19 billion), a 3% year-over-year increase. This growth was fueled by the success of the game and network services unit, home to Sony's popular video game platform PlayStation. The division saw a more than double-digit increase in sales, bringing in 1.07 trillion yen ($7 billion) for the quarter. The imaging and sensing solutions business also recorded a substantial gain of 129%.
As for net income, this figure increased at an even faster pace than overall sales. It soared 69% higher to 338.5 billion yen ($2.2 billion).
A 100-billion-yen increase in sales guidance
Sony raised its sales forecast for the entire year of 2024, predicting an increase of 100 billion yen ($6.5 billion). The new forecast totals slightly over 12.7 trillion yen ($83 billion). The company chose to maintain its net income forecast at 980 billion yen ($6.4 billion).
The legendary Japanese conglomerate seems to be riding a wave of success. Its recent release of an upgraded version of the latest PlayStation contributed to its impressive sales in the game and network services business. The year 2025 is shaping up to be a bustling time for the video game industry, with new platforms launching and new installments in popular series such as Grand Theft Auto from Take-Two Interactive.
In light of these positive financial performances, Sony may consider further investments in its successful game and network services unit to sustain its momentum. The company's impressive financial results have also attracted more interest from finance-savvy individuals, potentially leading to an increase in investment opportunities related to Sony's stock.
