Sony shares tumble on weaker-than-expected annual outlook

Sony Group Corp’s shares fell as much as 4.8% on Monday after the Japanese electronics and entertainment conglomerate’s annual profit outlook fell short of market expectations.

The company on Friday posted a record operating profit for the year ended March 2023, driven by a robust performance at its music and microchip units.

For the current business year, however, it projected a 3.2% profit decline to 1.17 trillion yen ($8.55 billion), missing an analysts average estimate of a 1.275 trillion yen profit, as it expects slow recovery in profitability in the videogame unit.

Sony had struggled to make enough PS5 to meet demand during the COVID-19 pandemic because of supply chain snarls, but President Hiroki Totoki said on Friday the company was now ready to deliver the consoles without keeping customers waiting.