Investing.com — Japanese stocks of electronics group Sony Shares of Corp (TYO:) rose sharply on Wednesday after it announced a massive stock buyback and stock split, offsetting weak annual earnings and middling guidance.
Sony shares jumped 10% to 13,170.0 yen, the highest level in nearly two months. The stock was the biggest support for the index, which rose by 0.5%.
US-listed Sony (NYSE:) shares rose 6% in overnight trading.
Sony said it will buy back shares worth 250 billion yen ($1.6 billion), and will also do a five-for-one stock split.
This came as the entertainment and electronics group posted a 7% drop in operating profits, due to weakness in its life insurance unit. Sony plans to spin off the unit in 2025.
But Sony's profits were also hurt by increasing weakness in the gaming sector, amid a broader decline in the industry. Video games make up about a quarter of Sony's total revenue, and Playstation 5 sales are now expected to slow as it enters its fourth year of production.
But weaker PS5 sales mean Sony will also see fewer hardware losses in console sales, with Sony forecasting a 7% profit increase on that notion.
The company also expects a 40% jump in profits from its chip business in fiscal 2025.
