Eastman Kodak Co. Earnings Cheat Sheet: Widening Losses Push Company Below Estimates

Eastman Kodak Co. (NYSE:EK) reported its results for the third quarter. Eastman Kodak deals in image capture and output devices, consumables, and systems and solutions for consumer, business, and commercial printing applications.

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Eastman Kodak Earnings Cheat Sheet for the Third Quarter

Results: Loss widened to $222 million (83 cents per diluted share) from $43 million (loss of 16 cents per share) in the same quarter a year earlier.

Revenue: Fell 16.8% to $1.46 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: EK fell short of the mean analyst estimate of a loss of 41 cents per share. It fell short of the average revenue estimate of $1.65 billion.

Quoting Management: “More than anything, the results of this quarter reflect our continued progress toward establishing digital growth businesses that will form the nucleus of a new Kodak,” said Antonio M. Perez, Chairman and Chief Executive Officer, Eastman Kodak Company. “In Consumer Inkjet, ink gross profit dollars doubled in the third quarter and year-to-date. Our installed base of printers is now sufficiently large that we expect to meet a key milestone in the fourth quarter – achieving positive gross profit for this business as a whole, driven by ink gross profit. Packaging Solutions sales increased 89% in the quarter and more than 130% year-to-date. In Commercial Inkjet, revenue for the entire PROSPER product line rose 40% in the third quarter, and we anticipate that revenue recognition for PROSPER presses will accelerate in the fourth quarter, based on installations already in the field and continued success in the marketplace.”

Key Stats:

The company has now missed analyst estimates for the last four quarters. It fell short by 3 cents in the second quarter, by 53 cents in the first quarter, and by 36 cents in the fourth quarter of the last fiscal year.

Revenue has fallen in the past four quarters. Revenue declined 5.4% to $1.49 billion in the second quarter. The figure fell 31.6% in the first quarter from the year earlier and dropped 25.4% in the fourth quarter of the last fiscal year from the year-ago quarter.

Looking Forward: For the next quarter, analysts are increasingly pessimistic about the company’s performance. The average estimates for the fourth quarter is at a loss of 21 cents per share, down from 4 cents ninety days ago. The average estimate for the fiscal year has reached a loss of $2.43 per share, down from a loss of $2.08 ninety days ago.

Competitors to Watch: Xerox Corporation (NYSE:XRX), Canon Inc. (NYSE:CAJ), Hewlett-Packard (NYSE:HPQ), Dell (NASDAQ:DELL), Panasonic Corp. (NYSE:PC), Audiovox Corporation (NASDAQ:VOXX), Sony Corporation (NYSE:SNE), and Apple Inc. (NASDAQ:AAPL).

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(Source: Xignite Financials)