Leading Independent Investment Research, Morningstar, Inc.

Morningstar

Leading Independent Investment Research

Morningstar, Inc.

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. We offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors. 

Morningstar provides data on more than 500,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 16 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries, with more than $180 billion in assets under advisement or management as of June 30, 2015. We have operations in 27 countries.

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Equity Bottom-Up

Sony reported JPY 92.3 billion operating profit for the December quarter, which is 54.3% below the previous year’s number, and below our forecast of JPY 200 billion. However, since Sony had announced goodwill impairment of JPY 112.1 billion on Jan. 30, we believe that announced numbers were broadly in line with our expectation. Concurrently, Sony has revised its full-year operation profit guidance from JPY 270 billion to JPY 240 billion, reflecting: 1) JPY 112.1 billion impairment expense mentioned above: 2) JPY 37.2 billion profit from selling part of M3 shares; and 3) JPY 40.9 billion profit from operational improvement, mainly due to semiconductor business.We consider that recovery on semiconductors was much faster than anticipated, and therefore the new guidance is above the market expectation. We fine-tuned our earnings forecast and revise our fair value estimate to JPY 4,000 from JPY 3,400, while retaining our no-moat rating. We are impressed with the strong fundamentals of Sony, but we believe that most are already embedded in the current share price.Analyst: Kazunori Ito

Sony reported JPY 92.3 billion operating profit for the December quarter, which is 54.3% below the previous year’s number, and below our forecast of JPY 200 billion. However, since Sony had announced goodwill impairment of JPY 112.1 billion on Jan. 30, we believe that announced numbers were broadly in line with our expectation. Concurrently, Sony has revised its full-year operation profit guidance from JPY 270 billion to JPY 240 billion, reflecting: 1) JPY 112.1 billion impairment expense mentioned above: 2) JPY 37.2 billion profit from selling part of M3 shares; and 3) JPY 40.9 billion profit from operational improvement, mainly due to semiconductor business.We consider that recovery on semiconductors was much faster than anticipated, and therefore the new guidance is above the market expectation. We fine-tuned our earnings forecast and revise our fair value estimate to JPY 4,000 from JPY 3,400, while retaining our no-moat rating. We are impressed with the strong fundamentals of Sony, but we believe that most are already embedded in the current share price.Analyst: Kazunori Ito

Strong Momentum of Image Sensors and PS4 Will Continue; Revising Sony FVE to JPY 4,000

Sony Corp

Strong Momentum of Image Sensors and PS4 Will Continue; Revising Sony FVE to JPY 4,000