Fujifilm (FUJIY) Q2 Earnings Improve, Revenues Decline Y/Y

Fujifilm (FUJIY) Q2 Earnings Improve, Revenues Decline Y/Y

Premium photographic image-product company Fujifilm Holdings Corporation FUJIY reported mixed results for second-quarter fiscal 2017 (ended Sep 30, 2016).

Net income for the quarter was ¥22.4 billion ($218.7 million), down 1.1% year over year. Quarterly earnings per American Depositary Receipt (“ADR”) was 49 cents, up 22.5% year over year.

Revenues

Revenues were down 9.6% year over year to ¥573.9 billion ($5,604.7 million).

Revenues from the Imaging Solutions segment – 13.3% of the total revenue – came in at ¥76.5 billion ($747.4 million). The Information Solutions segment contributed ¥223.8 billion ($2,185.3 million) or 39% of the total revenue, while the Document Solutions segment generated ¥273.6 billion ($2,672.1 million) or 47.7% of the total revenue.

Of the total revenue, domestic revenues accounted for 43.3%, while international revenues made up the remaining 56.7%.

AXIR Consulting

Costs/Margins

Gross margin in the fiscal second quarter was 39.4%, up 20 basis points (bps) year over year. Selling, general and administrative (SG&A) and R&D expenses were ¥190.2 billion ($1,857.1 million) or 33.1% of the total revenue.

Balance Sheet

Fujifilm exited the fiscal second quarter with cash and cash equivalents of ¥650.1 billion ($6,423.5 million), up 8.2% from the figure recorded as of Mar 31, 2016. The company’s long-term debt was ¥289.8 billion ($2,863.6 million), almost flat year over year.

Cash Flow

For the fiscal second quarter, Fujifilm’s net cash from operating activities totaled ¥138 billion ($1,312.8 million), while its capital expenditure was ¥39.3 billion ($373.9 million).

Outlook

Going forward, Fujifilm intends to improve its financials through strategic innovations and business expansion. The company expects a 3.7% year-over-year downfall in revenues to ¥2400 billion in fiscal 2017. Operating income is projected at ¥192 billion, reflecting a surge of 0.4% from the fiscal 2016 level. Moreover, net income for fiscal 2017 is projected to be down 9.2% year over year to ¥112 billion. This will result in earnings per share of ¥252.51.

As of Oct 28, 2016, Fujifilm closed the trading session at $37.71 per share. The stock price declined 1.5% after the second-quarter fiscal 2017 results were out on Oct 27, 2016.

Fujifilm currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

FUJIFILM HLDGS Price, Consensus and EPS Surprise

 

FUJIFILM HLDGS Price, Consensus and EPS Surprise | FUJIFILM HLDGS Quote

Stocks to Consider

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Some better-ranked stocks within the industry that warrant a look include:

Analog Devices, Inc. ADI currently sports a Zacks Rank #1 and has an average positive earnings surprise of 10.22% over the trailing four quarters.

Applied Optoelectronics, Inc. AAOI currently carries a Zacks Rank #2 (Buy) and has an average positive earnings surprise of 91.96% over the four trailing quarters.

Adobe Systems Inc. ADBE currently carries a Zacks Rank #2 and has an average positive earnings surprise of 5.58% over the last four quarters.

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