Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

On Jul 4, 2013, we upgraded photographic image company, Fujifilm Holdings Corporation (FUJIY - Analyst Report) 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 - Snapshot Report), carrying a Zacks Rank #1 (Strong Buy), and Cohu, Inc. (COHU) and Ciena Corporation (CIEN - Analyst Report) both carrying a Zacks Rank #2 (Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GRP IN DXYN 15.84 +7.90%
BOFI HLDG IN BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%