Sony Stock Jumps 12 Percent on Strong Results
The company's stock surged Thursday in Tokyo after posting its best quarterly results in seven years on Wednesday.
Sony Corp. stock jumped 12 percent Thursday in Tokyo after its strong quarterly earnings beat expectations with operating income of $1.45 billion (￥178 billion) announced on Wednesday, with troubled Sony Pictures even staying in the black.
The stock ended the day at ￥3,101.5 ($26.42) on the Tokyo Stock Exchange (TSE), and is now up 95 percent over the last 12 months.
After its best quarter in seven years, with improved results across the board, from the best-selling PlayStation 4 to newer winners such as sensors, some analysts and investors think Sony has finally turned a corner under CEO Kaz Hirai after years of losses. However, Sony is still predicting a loss of $1.4 billion (￥170 billion) for the fiscal year to March.
Hirai will lay out his strategy for continuing growth and recovery on Feb. 18 at Sony headquarters in Tokyo.
The hack at Sony Pictures is likely to cost only $15 million, although longer-term fallout from loss of trust and damaged relationships is harder to quantify. Even The Interview, the movie that was likely the cause of the cyber attack many believe carried out by North Korea in retaliation for mocking Kim Jong-un, may now eventually break even.
The 12 percent jump on the TSE was the maximum gain allowed by the exchange, according to rules on rises and falls designed to reduce volatility.