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SNE Stock Soars as PS4 Growth Overshadows Smartphone Decline

By U.S. News & World Report

Shares of Japanese electronics powerhouse Sony (ticker: SNE) rallied more than 7 percent higher on the heels of its fiscal first-quarter earnings report, after SNE posted a surprise profit that Wall Street never saw coming.

Before the first-quarter report SNE stock was already up nearly 25 percent in 2016, so Sony shareholders continue to enjoy outsized returns during a year in which the Standard & Poor’s 500 index is up less than 6 percent.

Sony’s revenue fell 10.8 percent to $15.66 billion in the June quarter. Net income fell 74.3 percent to $205 million. That breaks down to earnings per share of 16 cents, which crushed the 28-cent-per-share loss analysts were expecting.

[See: 8 Easy Ways to Make Money.]

The strength of Sony’s game and network services segment was largely behind the profit beat, as PlayStation4 operating income more than doubled from $189.9 million a year ago to $428.4 million in the most recent quarter. Strong software sales on the PS4 network, combined with falling PS4 hardware costs, made for the impressive profit uptick.

Who knew that investing in video games could be so profitable?

Not all sunshine and rainbows. SNE stock is soaring on the earnings beat, but revenue is a less-rosy story. Sony slashed its full-year revenue forecast by a fairly significant margin — 8.7 percent — as the strengthening Japanese yen puts a dent in Sony’s results.

When the yen strengthens against the dollar, it makes Japanese products and services more expensive for the U.S., which is Japan’s second-largest export destination next to China. Through June 30, the yen had appreciated 12.3 percent over the past 12 months against the greenback.

Sony also blamed weak sales of still and video cameras for part of its sales shortfall. The 2016 Kumamoto earthquakes made procuring camera components much more difficult, slowing down that aspect of its business.

[See: Oil ETFs: 8 Ways to Invest in Black Gold.]

The Kumamoto earthquakes also contributed to weakness in SNE’s semiconductors and imaging products segments, the company says. But that wasn’t the only problem dragging its semiconductors segment down.

The semiconductors category includes the sale of image sensors, a crucial part of cameras in smartphones. Apple (AAPL) is one of Sony’s end-customers, and considering the iPhone is on a global sales slump, that didn’t help results either.

Going forward. It’s rare to see a quarter like the one Sony just had, where revenue is a clear area of concern but profits manage to blow investors away. It’s great to see the PS4 pulling its weight, and Sony is well-positioned for the continued growth of the gaming industry.

As the smartphone industry matures across the globe, the PS4 — and the games Sony sells on it — give SNE shareholders some much-needed exposure to a growth market.

For many video games, owning hard copies the games themselves is no longer strictly necessary. That’s great for Sony, which can use the PS4 as a platform to sell software-based games at much higher margins.

[See: The 10 Best Ways to Buy Tech Stocks.]

Still, it wouldn’t hurt to see a rebound in the smartphone market. And if the iPhone 7, which is expected to debut in mid-September, ends up flying off the shelves, Sony’s picturesque 2016 should continue in style.

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SNE Stock Soars as PS4 Growth Overshadows Smartphone Decline originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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