Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Sony Corporation (ADR) (SNE): Here’s What You Should Know

Sony Corporation (ADR) (NYSE:SNE)One of the main news stories over the last few months has been the devaluation of the yen, which contributed greatly to the 40% surge in Japanese equities so far this year. This week, the dollar popped over 100 yen. A weak yen benefits Japanese exporters, as their products become cheaper abroad. Japanese electronics giant Sony Corporation (ADR) (NYSE:SNE) has been struggling over the last few years, posting losses since 2009. However, the company is now finally back in the black, helped by the weaker yen and cost cutting initiatives.

Return to Profitability

While the quarterly and full-year profit reported by Sony Corporation (ADR) (NYSE:SNE) was not particularly large, the fact that the company is turning a profit again is certainly encouraging. For the quarter, the company earned $948 million, and the full-year figure came in at $434 million. The annual profit was up from a monster loss of $5.7 billion in the previous year, and beat the company’s expectations as well as the analyst consensus.

Sales for the quarter rose some 8% to $17 billion, of which roughly $1.8 billion can be attributed to positive exchange rate effects. Cost-cutting measures, including the sale of some of the company’s real estate, boosted the company’s profitability, whereas revenue benefited from an especially strong performance in its financial services division and its film business.

The biggest problem for Sony Corporation (ADR) (NYSE:SNE) at the moment is the revitalization of its electronics business, which is still proving to be a challenge. The television segment saw a 30% decline in sales for the eighth consecutive year of losses, and camera sales also slowed. However, the company is committed to returning to profitability in electronics, with several executives forgoing bonuses in order to support the cause. For the current fiscal year, Sony Corporation (ADR) (NYSE:SNE) expects a profit of $505 million, with a 10% increase in sales.

Outpaced by Rivals

Sony used to be one of the world’s main electronics companies, if not the number one. However, in the last decades it has seen its market share trampled by competitors. Apple Inc. (NASDAQ:AAPL)‘s wildly popular iPod and iPhone have all but killed Sony’s portable device business. These products propelled Apple Inc. (NASDAQ:AAPL) to a household name and the world’s primary electronics company, but even this giant seems to be losing some of its shine lately, having been overtaken by Samsung (NASDAQOTH:SSNLF) in the smartphone market. In their latest report, the company delivered results that were ahead of the consensus, but still down substantially from the year before. The company now hopes to revive interest in its stock by increasing its dividend and expanding its share repurchase program.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.