Eastman Kodak Co. (EK) will report its second-quarter 2011 earnings on Tuesday, July 26, 2011. The current Zacks Consensus Estimate for earnings per share (EPS) is negative 59 cents, representing an annualized growth of (15.69%).
With respect to earnings surprises, out of the trailing four quarters, Kodak underperformed the Zacks Consensus Estimate in three quarters. The average earnings surprise was a negative 916.25%, implying that the company has underperformed the Zacks Consensus Estimate by the same magnitude over the last four quarters.
First Quarter Highlights
Eastman Kodak Company reported first quarter of 2011 financial results with adjusted earnings per share loss from continuing operations of $1.13 compared with earnings per share of $0.74 in the year-ago comparable quarter. The quarter’s results also surpassed the Zacks Consensus Estimate of a loss of $0.61 per share.
Kodak reported sales of $1,322 million, down 30.9% year over year and 31.4% sequentially. The year-over-year decline was attributed to a 32.2% negative price/mix impact, partially offset by a 0.4% volume growth and 0.9% positive foreign currency impact. Reported sales also missed the Zacks Consensus Estimate of $1,375 million.
Agreement of Estimate Revisions
In the last 30 days, none of the analysts increased or decreased their earnings per share (EPS) estimates for the second quarter, as there was no catalyst for such change.
Furthermore, for FY 2011, none of the analysts increased or decreased their earnings per share (EPS) estimates.
Magnitude of Estimate Revisions
Estimates over the last 30 days inched up from a negative 58 cents per share to the current negative 59 cents for the second quarter of 2011, representing a year-over-year growth of negative 15.69%.
Estimate for fiscal 2011 remained static at a negative $2.18 over the last 30 days while that for fiscal 2012 showed a decrease from ($1.05) to ($0.80). These estimates represented a year-over-year growth of a negative 5,343.75% for 2011 and 63.41% for 2012.
Our Take
We believe that the company’s numerous promotional programs and product launches will certainly push forward the revenue growth, thereby posting improved financial results for the second quarter 2011. Kodak’s investment strategies in digital growth businesses are also expected to raise market share trend and induce growth.
Based in New York, Kodak provides imaging technology products and services to the photographic and graphic communications markets across the globe. The company directly competes with its peers such as Canon Inc. (CAJ), Sony Corporation (SNE) and FUJIFILM Holdings Corporation (FUJIY.PK).
We currently maintain a long-term Neutral recommendation on the stock. Kodak has a Zacks #3 Rank, which translates into a short-term Hold rating (1-3 months).
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