By Kosaku Narioka

Sony Group is scheduled to report its fourth-quarter results on Wednesday. Here's what you need to know:

NET PROFIT FORECAST: Sony Group is expected to post a 19% drop in net profit to 153.6 billion yen, equivalent to $1.04 billion, for the three months ended March, according to a poll of analysts by Visible Alpha. That would compare with a net profit of Y189.0 billion in the year earlier period.

REVENUE FORECAST: Fourth-quarter revenue is estimated to have fallen 14% from a year earlier to Y3.004 trillion, according to the Visible Alpha poll.

The stock has risen 8.5% so far this year through Tuesday, following a 26% gain in 2024.

WHAT TO WATCH:

--Besides its fourth-quarter results, Sony is expected to offer guidance for the fiscal year that began in April. Investors are focusing on any projections for sales and profit as well as the management's views on U.S. tariffs impact on its operations.

--In its third quarter, operating profit from its game business rose 37% to Y118.06 billion thanks to higher sales of network services and third-party software titles, and PlayStation 5 sales rose to 9.5 million units from 8.2 million units a year earlier. Investors will be closely watching the strength of the key business.

--Chief Executive Hiroki Totoki, who assumed the top role in April, said earlier this year that the company is trailing behind top global players in many aspects, such as size and earnings, adding that there is room for improvement to become a truly global organization. Investors will be paying attention to any strategic initiatives the new chief may be implementing.

Write to Kosaku Narioka at kosaku.narioka@wsj.com

(END) Dow Jones Newswires

May 13, 2025 20:31 ET (00:31 GMT)

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