Sony's shares popped on Monday after the company raised its earnings outlook and analysts said the company could hit profit levels not seen in 20 years. The Japanese electronic giant's stock closed 3.84 percent higher in Tokyo. On Friday after the market close, Sony raised its earnings outlook for the fiscal year ended March 31. It said operating income would be 285 billion yen ($2.6 billion), up from a previous forecast of 240 billion yen. Pre-tax profit is expected to come in at 250 billion yen, up from February's forecast of 196 billion yen. "The forecast for consolidated operating income has been revised upward due to expected improvement, compared with the February forecast, in all segments other than the components segment, which is expected to deteriorate compared with the February forecast," Sony said in its statement on Friday.

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"The primary reasons for the upward revision in the segments that are anticipated to improve are expected decreases in amortization of deferred insurance acquisition costs and other costs in the Financial Services segment and lower costs than anticipated in February in the other segments, particularly Semiconductors." Under CEO Kazuo Hirai, Sony has been focusing on making previously loss-making areas like smartphones profitable and doubling down on segments of strong growth like its PlayStation gaming business and semiconductors.