Investing.com– Japanese shares of electronics conglomerate Sony Corp (TYO:) rose sharply on Wednesday after it announced a massive stock buyback and a stock split, which offset weak annual earnings and middling guidance. 

Sony’s shares jumped 10% to 13,170.0 yen- a near two-month high. The stock was the biggest boost to the index, which rose 0.5%.

Sony (NYSE:)’s U.S.-listed shares surged 6% in overnight trade.

Sony said it will buy back 250 billion yen ($1.6 billion) worth of shares, and also conduct a five-for-one stock split. 

This came as the entertainment and electronics conglomerate clocked a 7% fall in operating profit, on weakness in its life insurance unit. Sony plans to spin off the unit in 2025.

But Sony’s earnings were also hit by growing weakness in the gaming sector, amid a broader decline in the industry. Videogames make up about a quarter of Sony’s overall revenue, with the Playstation 5 now expected to see sluggish sales as it enters its fourth year of production.

But weaker PS5 sales mean that Sony will also see lower hardware losses on sales of the console, with Sony forecasting a 7% increase in profits on that notion. 

The firm also forecast a 40% profit jump for its chips business in fiscal 2025.





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