It looks like another company made some major headway during this earning season. Japanese tech giant Sony hit its earnings out of the ball park according to Reuters:
Sony’s stock rose as much as 12.4 percent to its highest level since June 2008, becoming the most traded firm by turnover on Tokyo’s main board. It finished up 11.4 percent at 4,918 yen, giving it a market capitalization of around $54.6 billion.
This is an incredible turnaround for a company that has gone through its fair share of hard times. Bloomberg columnist Yuji Nakamura writes that:
Once a shining example of Japanese prowess in combining technology to create must-have gadgets, Sony went into a slump after branching out into too many businesses and failing to become a major smartphone manufacturer. Now, after five-plus years of tough restructuring that slashed its workforce and multiple product lines, there’s mounting evidence that a revival has taken root.
This is a true testament to Sony’s ability to cut administrative and operating costs while effectively pivoting the company towards more fruitful fields such as robotics. Investors that trusted in the company’s ability to turn things around were clearly amply rewarded.
Investors may have been sceptical about investing in Japan after Nissan and Kobe Steel’s respective scandals, but Sony may give them confidence that there are still great stocks on offer in Tokyo. Be sure to consider your risk and if you may have missed the boat, as a near 11% increase may mean things could slow in the coming quarter. However, if Sony is really on track for a major overhaul, this could be the beginning of something big.
To read Reuters’ article on Sony’s earnings, click here.
To read Bloomberg columnist Yuji Nakamura’s article on Sony’s comeback, click here.
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