In third-quarter fiscal 2015 (ended Dec 31, 2014) Fujifilm Holdings Corporation (FUJIY) reported a net income of ¥53.3 billion ($465.9 million), up 71.8% year over year. Earnings per American Depositary Receipt (“ADR”) were recorded at 93 cents for the quarter, rising 47.6% from the year-ago tally.
Revenues
Revenues for the third quarter climbed 5.4% year over year to ¥632.3 billion ($5526.9 million), backed by gradual recovery in the global economy. Sales in the company’s businesses like photo imaging, documents, electronics material and medical systems experienced remarkable growth in the quarter.
Revenues from the Imaging Solutions segment came in at ¥107.6 billion ($940.3 million), accounting for 17% of total revenue. The Information Solutions segment contributed ¥239.6 billion ($2094.9 million) or 37.9% of total revenue; while the Document Solutions segment generated ¥285.1 billion ($2492.8 million) or 45.1% of total revenue.
Of the total revenue in the quarter, domestic revenues accounted for 38.9%, while international revenues contributed the remaining 61.1%.
Costs/Margins
Gross margin in fiscal third-quarter 2015 was 39.1%, down 10 basis points (bps) from the year-ago quarter. Selling, general and administrative (SG&A) and R&D expenses stood at ¥194.5 billion ($1700.0 million), representing 31.8% of the total revenue.
Balance Sheet
Exiting third-quarter of fiscal 2015, Fujifilm had cash and cash equivalents of ¥697.9 billion ($5819.2 million), up 15.4% from fiscal 2014. The company’s long-term debt stood at ¥317.3 billion ($2646.7 million), edging up 0.7% from fiscal 2014.
Cash flow
In the first nine months of fiscal 2015, Fujifilms’ net cash provided by operating activities was ¥179.6 billion ($1681.2 million), while its capital expenditure stood at ¥43.7 billion ($409.3 million).
Outlook
Fujifilm has upped its guidance for fiscal year 2015. It expects to earn revenues worth ¥2480 billion, reflecting a marginal year-over-year hike of 1.6%. Operating income is projected at ¥170 billion, reflecting an increase of 20.7% from fiscal 2014 level. Moreover, the company estimates its net income for the coming fiscal at ¥110 billion, up 35.8% year over year. This will lead to earnings of ¥228.15 per share.
Other Stocks to Consider
With a market capitalization of $15.56 billion, Fujifilm Holdings carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the industry include Apple Inc. (AAPL), Axcelis Technologies Inc. (ACLS) and Active Power Inc. (ACPW). All the three stocks hold a Zacks Rank #2 (Buy).
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