Will the Sony Q3 earnings report meet your expectations?

Sony Corporation ADR (NYSE:SNE) is slated to deliver Q3 results on January 30, 2007. My editors asked if I'd switch gears from activist to researcher and provide a lead in for that earnings report. Being one to blindly serve the desires of my superiors, I quickly consented to undertake the task (irony intended).

Almost everyone I talk to seems to think that the name Sony is synonymous with PS3. If that is the case, then almost everyone also knows that Sony has fallen flat. Indeed it's been a tough fiscal year so far for our friends at Sony. Bank of New York shows that thus far Sony is posting annual EPS of $0.74 for 2006. That's $0.26 off from the previous year. Sony's Q3 earnings estimate for 2006 is $0.28 which would represent a modest improvement over the previous four quarters but it would still be a pitiful showing when compared to $1.37 for the same quarter last year. MSN Money, Stock Scouter gives Sony less than stellar marks for current fundamentals pointing out a lack of growth in comparison to the previous three years.

So what does Sony have up its sleeve for 2007? I can't find much Sony excitement anywhere. It would seem that it's doing fairly well with its sales of mobile handsets, but then who isn't. When I look over its list of product offerings including but not limited to CD players, televisions and GPS, I fail to find any brightly shining stars. That's okay if you're into mediocrity I guess. In an article by Troy Wolverton at TheStreet.com, he states: "Sony Chairman and CEO Nobuyuki Idei warned that the company's results may not improve any time soon." The article goes on to quote CEO Idei directly stating, "Sony reiterates its belief that strengthening the competitiveness of our electronics products is the most pressing issue facing our management today."

I personally still like Sony as a company overall, but my opinion is that Sony investors will need to take the upcoming earnings report with a grain of salt or a spoonful or two. I'm really sorry to be so blunt but Sony has failed to excite me this year. Perhaps it will fix that some time in the future with PS4. Umm, but I wouldn't hold my breath ...

Also check out some other earnings reports that we're following, and let us know your thoughts on earnings expectations.