Sony Corp. posted a surprise quarterly profit as strength in its PlayStation division outweighed a slowdown in sales of image sensors.
The company reported net income of 21.2 billion yen ($205 million) in the quarter through June, compared with the average analysts’ expectation for a 39 billion-yen loss. The firm maintained its forecast for annual profit of 80 billion yen.
The strength in games is helping investors look past impact from the Kumamoto earthquakes, which shut the primary manufacturing site for image sensors that power digital cameras. Their focus is shifting to how the company manages a global slowdown in smartphone sales that is hitting component sales, and whether it can sustain user growth at its games division before launching a virtual reality platform and upgraded PlayStation consoles.
“Nothing short of fantastic, especially given that the market has been expecting a loss,” Amir Anvarzadeh, Singapore-based head of Japanese equity sales at BGC Partners Inc., said in an e-mail. “The big takeaway was the games business. Profit there more than doubled and that’s even before PlayStation VR launch in October, which will be a huge shot in the arm for hardware sales.”
Estimates for operating losses from the earthquakes were lowered to 80 billion yen for this fiscal year, from 115 billion yen.