Sony's value reportedly dropped by $10 billion following a disappointing PlayStation 5 sales forecast, with shares falling as much as 8.4% and closing down 6.5%. The drop in share price has resulted in around $10 billion of value being wiped from Sony’s stock since the forecast cut. Sony's president aims to improve operating margins in the gaming division by releasing more PS5 games on PC, as the company faces criticism for its low operating margin of 6%, which is near decade lows despite high digital game sales and PS Plus service margins. Sony also expects PlayStation 5 hardware sales to gradually decline in the next fiscal year and plans to release no major existing franchise titles during that period.
Sony's stock value dropped by $10 billion after cutting its sales forecast for the PS5, with analysts highlighting the bigger concern of declining margins in its gaming business. Despite record-high digital sales and subscription revenues, the operating margin for the gaming division is at a near decade low, raising questions about the impact of rising software production costs and hardware economies of scale.
Renault's shares surged 7% after the carmaker announced plans to increase its dividend per share to 1.85 euros for the financial year. The company reported a full-year group operating margin of 7.9% and aims for double-digit margins by 2030. Despite slightly below-forecast net profit, Renault targets a group operating margin of at least 7.5% and free cash flow of 2.5 billion euros in 2024, focusing on upcoming vehicle launches, cost optimization, and accelerating its electric vehicle and software strategy. CEO Luca de Meo acknowledged the challenging market but expressed optimism due to upcoming product launches, including electric cars.
Crocs, Inc. anticipates record annual revenues of approximately $3.95 billion for 2023, marking over 11% growth compared to the previous year. The company also expects to exceed its full-year operating margin target and anticipates 3-5% revenue growth in 2024. Additionally, Crocs plans to reinvest its strong margins into strategic investments for long-term growth and is changing its segment reporting from four segments to two.
Tyson Foods' stock fell 6% after reporting a decline in revenue for Q4 and providing guidance for flat revenue in FY24. The company's revenue fell 2.8% YoY, missing expectations, with volume and pricing down in most segments. Operating margin was significantly lower compared to the previous year. Tyson Foods expects adjusted operating income for FY24 to be in the range of $1.0B to $1.5B, with capital expenditures between $1.0B and $1.5B. The company also anticipates a decrease in domestic beef production in FY24.
Onsemi shares plunged over 18% after the chipmaker provided weaker-than-expected guidance due to softened sales and a decline in operating margin. The company reported third-quarter earnings per share of $1.39, down from $1.45 a year ago, with revenue declining 0.5% to $2.18 billion. Sales slumped in its Analog Solutions Group and Intelligent Sensing Group, while they increased in its Power Solutions Group. CEO Hassane El-Khoury cited risks from higher interest rates and tensions between the U.S. and China as contributing factors to the company's challenges.
Tesla's shares have experienced a decline due to CEO Elon Musk's cautious tone on delivery expectations and manufacturing difficulties, as well as the company's Q3 financial report falling below analysts' expectations. Tesla's price cuts have also impacted its profit margins. A comparison of gross and operating margins with other automakers shows a decline for Tesla, which was previously known for its high profit margins. It remains to be seen if other manufacturers will show similar declines in their upcoming quarterly results.
