Fujifilm Upgraded to Neutral - Analyst Blog
09 July 2013 - 3:00AM
Zacks
On Jul 4, 2013, we upgraded
photographic image company, Fujifilm Holdings
Corporation (FUJIY) to Neutral from Underperform based on
the company’s strong fiscal fourth quarter 2013 results.
Why the
Upgrade?
Fujifilm’s net income in the fiscal
fourth quarter of 2013 increased 26.7% year over year to ¥25.4
billion ($275.7 million). Revenues in the quarter increased 4.6%
year over year to ¥603.5 billion ($6,546.5 million). The launch of
new products paved the way for the increase.
Following such strong results,
Fujifilm expects revenues in fiscal 2014 to be ¥2,350.0 billion, up
6.1% year over year. Operating income is expected to be ¥140.0
million, an increase of 22.7% over fiscal 2013. Also, Fujifilm
expects its net income for the coming fiscal to be ¥70.0 billion,
increasing 29.0% year over year.
Various acquisitions undertaken by
Fujifilm also helped the company prosper. Fujifilm acquired
Sonosite in Mar 2012, which has been contributing immensely to the
company’s business since then. Moreover, Fujifilm also acquired the
BPO division of Australia-based Salmat last August. Fujifilm
intends to utilize the division to expand its reach in the
Asia-Oceana region.
Fujifilm continues to expand its
diverse operations, with sales in the pharmaceuticals business of
the company jumping 20% year over year in fiscal 2013. The company
expects to continue deriving significant revenues from the segments
in the coming quarters, especially pharmaceuticals.
However, Fujifilm’s presence
outside Japan makes it prone to various economic and socio
political risks in the regions of operations. The recent economic
downturn in Europe was a major blow to the company’s financials in
fiscal 2013. Moreover, the company’s results are hurt by the ever
increasing prices of raw materials. This may lead to high cost of
production, thereby impacting margins.
Other Stocks to
Consider
Fujifilm currently carries a Zacks
Rank #1 (Strong Buy). Some of the companies that compete with
Fujifilm in diverse operations are Alliance Fiber Optic
Products Inc. (AFOP), carrying a Zacks Rank #1 (Strong
Buy), and Cohu, Inc. (COHU) and Ciena
Corporation (CIEN) both carrying a Zacks Rank #2
(Buy).
ALLIANCE FIBER (AFOP): Free Stock Analysis Report
CIENA CORP (CIEN): Free Stock Analysis Report
COHU INC (COHU): Free Stock Analysis Report
FUJIFILM HLDGS (FUJIY): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Alliance Fiber Optic (NASDAQ:AFOP)
Historical Stock Chart
From Jun 2024 to Jul 2024
Alliance Fiber Optic (NASDAQ:AFOP)
Historical Stock Chart
From Jul 2023 to Jul 2024