Kodak Launches Product - Analyst Blog

Eastman Kodak Company (EK) launched the new KODAK PYNK Smart Print System, a new patent-pending technology, which is going to print and frame much more easily and quickly.

Kodak carries out numerous expansion programs and continuously launches new products at competitive prices; which are expected to push growth despite the current difficult environment for the entire industry.

Kodak reported disappointing results for the second quarter of fiscal 2010 based on the continued weakness in economic conditions. Second quarter loss per share (excluding one-time items) was 51 cents, below the Zacks Consensus Estimate of a loss per share of 31 cents. Revenues were  $1,569 million, a decrease of 11% year over year from $1,766 million in the same period of 2009.

Kodak operates in a highly competitive market and encounters aggressive price competition for all of its products and services from numerous companies globally. Kodak's direct competitors include Canon Inc. (CAJ), Sony Corp. (SNE) and FUJIFILM Holdings Corp. (FUJIY)

The current situation is expected to continue and will negatively effect the operating results for the second half of fiscal 2010. Hence, for fiscal 2010, management expects revenues within the range of $7.5 billion to $7.7 billion, flat from the previous year.

However, Kodak expects to report net earnings in a range of $350 million to $450 million in fiscal 2010 from a net loss of $210 million in the previous year, based on the strict cost control initiative undertaken by the company.

Kodak faces integration and other risks related to acquisitions, strategic alliances, joint ventures, divestitures and outsourcing of transactions. Moreover, a huge dependence on third party manufacturers and external suppliers is also expected to negate both top-line and bottom-line results. Thus, we reiterate our Underperform rating on the stock. The short-term rating remains “Sell”, equivalent to the Zacks #4 Rank.

 
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