Fujifilm (FUJIY) Q1 Earnings & Revenues Beat, Shares Up

Premium photographic image-product company, Fujifilm Holdings Corporation (OTC:FUJIY) reported solid earnings for first-quarter fiscal 2018 (ended Jun 30, 2017). Share price of the stock climbed 3.2% to $38.30, following the release of better-than-expected results on Aug 14.

Inside the Headlines

Net income for the quarter came in at ¥43.8 billion ($394.3 million), soaring a whopping 263% year over year. Quarterly earnings per American Depositary Receipt (“ADR”) came in at 90 cents, surging 291.3% year over year. The bottom line also comfortably beat the Zacks Consensus Estimate of 21 cents per ADR.

Under the guidelines of the VISION 2016 plan (Apr 1, 2014-Mar 31, 2017), Fujifilm sucessfully boosted its profitability on the back of three major pillars – efficient management, expansion of international operations and launch of businesses.

Revenues

In the reported quarter, revenues improved 4.7% year over year to ¥571.5 billion ($5,143.9 million). In addition, the top line handily surpassed the Zacks Consensus Estimate of $5,118 million.

Revenues from the Imaging Solutions segment – 14.9% of the total revenue – came in at roughly ¥85.6 billion ($770.2 million). The Information Solutions segment’s revenues were ¥230.2 billion ($2,072.3 million), representing 40.2% of the total revenue, while the Document Solutions segment generated ¥257.9 billion ($2,321.6 million), accounting for 44.9% of the total revenue.

Of the total revenue, domestic revenues accounted for 40.5%, while international revenues made up the remaining 59.5%.

Fujifilm Holdings Corp. Price, Consensus and EPS Surprise

Fujifilm Holdings Corp. Price, Consensus and EPS Surprise | Fujifilm Holdings Corp. Quote

Costs/Margins

Gross margin in the fiscal first quarter remained nearly flat year over year at 40.4%. Selling, general and administrative (SG&A), and R&D expenses were ¥195.2 billion ($1,757 million) or 34.1% of the total revenue.

Balance Sheet

Fujifilm exited the fiscal first quarter with cash and cash equivalents of roughly ¥795.4 billion ($7,082.4 million), down 9.2% from the figure recorded as of Mar 31, 2017. The company’s long-term debt came in at ¥494.9 billion ($4,406.6 million), up 13.8% from the figure recorded at the end of fiscal 2017.

Cash Flow

In the first three months of fiscal 2018, Fujifilm’s net cash from operating activities totaled ¥93.4 billion ($840.5 million), while its capital expenditure summed ¥13.4 billion ($120.3 million).

Outlook

The company estimates a 5.9% year-over-year rise in revenues to ¥2,460 billion in fiscal 2018. Operating income is projected at ¥185 billion, reflecting 7.4% growth from fiscal 2017. However, net income for fiscal 2018 is estimated to be down 4.9% year over year to ¥125 billion. This will result in earnings per share of ¥285.55.

Zacks Rank & Stocks to Consider

Fujifilm currently carries a Zacks Rank #4 (Sell).

A few better-ranked stocks in the same space are listed below:

Applied Optoelectronics, Inc. (NASDAQ:AAOI) currently sports a Zacks Rank #1 (Strong Buy) and has an average positive earnings surprise of 21.04% for the last four quarters. You can see the complete list of today’s Zacks #1 Rank stocks here.

ACI Worldwide, Inc. (NASDAQ:ACIW) presently carries a Zacks Rank #2 (Buy) and generated an average positive earnings surprise of 31.25% over the trailing four quarters.

Axcelis Technologies, Inc. (NASDAQ:ACLS) also carries a Zacks Rank #2 and has an average positive earnings surprise of 35.04% for the past four quarters.

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