Sony Stock Jumps 12.4 Percent After Earnings in Biggest Single-Day Gain Since 2008
The increase added $3.3 billion to the company's market value in Tokyo and was driven by quarterly profits boosted by 'Spectre,' Adele and PlayStation 4.
Sony Corp.'s stock closed up 12.4 percent at ￥2,836 ($23.63) in Tokyo on Monday, following better-than-expected quarterly earnings reported by the conglomerate after the Tokyo market closed on Friday.
The surge in Sony's stock was its biggest one-day gain since 2008, driven by strong results for the October-to-December quarter, which were helped by better film, music and video games profits. The boost took Sony's market capitalization up $3.3 billion to more than $30 billion, but its Tokyo-listed shares remain down nearly 12 percent compared to a year ago.
Sony's U.S. shares on Friday jumped 17.7 percent to $23.88 after the results.
Spectre helped Sony Pictures triple its quarterly profit to $170 million, while Adele's record-setting 25 album contributed to the $228 million in operating profit at the music division.
Meanwhile, PlayStation 4 has continued to defy predictions of the death of console gaming, clocking up sales of 36 million units since its release, including 5.7 million over the holiday season. The game division outdid the music and pictures businesses, recording $335 million in quarterly operating income.
The combined income from the three divisions contributed nearly half of the $1.69 billion that Sony posted in operating profits, its best quarterly results in a decade.
The report and confidence shown in the company by investors are something of a vindication for the shift away from home electronics and a painful restructuring implemented by CEO Kaz Hirai and CFO Kenichiro Yoshida.
Sony will be hoping for a further boost later this year with the launch of its PlayStation VR virtual-reality system, due for release before the summer.