3Q Financial Reports from Sony, Canon, Motorola, Others Underscore Uncertainty, Volatility
The past week’s stock market roller coaster, with daily up- and down-ticks, reflects the vagaries of this earnings report season. Appropriately, the third-quarter data from consumer electronics companies have reflected the uncomfortable inconsistencies elsewhere in the market.
Sony Corp. reported its third consecutive quarterly loss of $287.5 million, much of it attributed to sizeable restructuring costs. Canon Inc. saw profit fall by 56% to about $398 million on a 22% revenue decline.
In related categories, Motorola reported higher profits despite its second straight sales decline. Nonetheless, Motorola became a Wall Street darling this week as enthusiasm grew for its Droid handset coming out later this week. On the other hand, Sprint Nextel lost $478 million during the third quarter, which also included major expenses in severance payments; Sprint’s revenue dropped by 9% during the period – a situation which is likely affect partners (equipment and retail) throughout the mobile handset category.