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FUJIFILM (FUJIY) Q1 Earnings Top Estimates, Revenues Drop Y/Y
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FUJIFILM (FUJIY - Free Report) reported first-quarter fiscal 2021 (ending Mar 31, 2021) earnings of 64 cents per share that beat the Zacks Consensus Estimate by 88.2% and surged 100% year over year.
In domestic currency, earnings surged 92% year over year to ¥68.57 per share.
Revenues of $4.24 billion beat the consensus markby 5.8%. In domestic currency, revenues decreased 14.8% year over year to ¥456.3 billion primarily due to the coronavirus outbreak. Revenues declined 13% year over year at constant currency (cc).
Domestic — 44.5% of revenues — was ¥202.9 billion, down 8.4% from the year-ago quarter. Overseas — 55.5% of revenues — was ¥253.4 billion, down 19.3% year over year.
Segment Details
Imaging Solutions segment revenues were ¥49.8 million, down 33.2% from the year-ago quarter.
Coronavirus-induced stay-at-home orders, business shutdowns including temporary closure of retailers and cancellation of events globally hurt revenues.
Fujifilm Holdings Corp. Price, Consensus and EPS Surprise
Reduced demand for color paper and the spread of the coronavirus hurt the photo imaging business revenues.
In the second quarter, FUJIFILM launched instax mini 11 globally in March.
Healthcare & Material Solutions segment revenues were ¥217.1billion, down 4.6% from the year-ago quarter. However, Healthcare revenues increased 3.7% to ¥107.9 billion.
Medical systems revenues were negatively impacted by the coronavirus. However, sales of mobile X-ray-imaging systems and portable ultrasound diagnostic devices increased.
In the pharmaceutical business, revenues increased due to higher licensing revenues. FUJIFILM signed licensing contract with India-based Dr. Reddy (RDY - Free Report) related to deployment of anti-influenza virus drug Avigan.
Further, in the bio CDMO segment, contract-process development and manufacturing business for biopharmaceuticals progressed steadily. In June, FUJIFILM announced an investment of ¥100 billion in large-scale manufacturing facility in Denmark.
FUJIFILM also inked a deal with Novavax (NVAX - Free Report) for bulk manufacturing of drug substance for the latter’s coronavirus vaccine candidate.
Display materials revenues were unchanged year over year. Sales of dry films for tablets increased owing to increasing demand due to work-from-home and online learning, offset by lower sales of TAC films and others.
Additionally, in the electronic-materials segment, sales of Chemical Mechanical Planarization slurries primarily for logic benefited from strong demand for tablets and others used for work-from-home and online learning.
However, graphic-systems sales declined due to lower printing demand.
Document Solutions segment revenues were ¥189.4 million, down 18.7% from the year-ago quarter.
Office products and printers sales and volume increased in Japan in the quarter under review due to bulk deals. Print volume decreased due to coronavirus-led office shutdowns.
Operating Details
Operating income decreased 45.1% year over year to ¥20.4 billion.
Imaging Solutions segment’s operating loss was ¥3 billion against the year-ago quarter’s income of ¥4.5 billion.
Healthcare & Material Solutions segment’s operating income declined 4.7% to ¥18 billion. Moreover, Healthcare operating income declined 16.7% year over year to ¥4.4 billion.
Document Solutions segment operating income plunged 40.8% year over year to ¥12.9 million.
Balance Sheet & Cash Flow
As of Jun 30, 2020, cash and cash equivalents were ¥386.3 billion, down from ¥396.1 billion as of Mar 31, 2020.
Total debt was ¥562.3 billion as of Jun 30, compared with ¥624.2 billion as of Mar 31, 2020.
In the first quarter, cash flow from operating activities was ¥69.7 billion.
Guidance
FUJIFILM expects revenues of ¥2,200 billion in fiscal 2021, suggesting a decline of 5% year over year. Coronavirus is expected to hurt revenues by ¥220 million. Operating income is projected at ¥140 billion, indicating a 25% year-over-year decline.
Agilent is set to report its quarterly results on Aug 18.
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FUJIFILM (FUJIY) Q1 Earnings Top Estimates, Revenues Drop Y/Y
FUJIFILM (FUJIY - Free Report) reported first-quarter fiscal 2021 (ending Mar 31, 2021) earnings of 64 cents per share that beat the Zacks Consensus Estimate by 88.2% and surged 100% year over year.
In domestic currency, earnings surged 92% year over year to ¥68.57 per share.
Revenues of $4.24 billion beat the consensus markby 5.8%. In domestic currency, revenues decreased 14.8% year over year to ¥456.3 billion primarily due to the coronavirus outbreak. Revenues declined 13% year over year at constant currency (cc).
Domestic — 44.5% of revenues — was ¥202.9 billion, down 8.4% from the year-ago quarter. Overseas — 55.5% of revenues — was ¥253.4 billion, down 19.3% year over year.
Segment Details
Imaging Solutions segment revenues were ¥49.8 million, down 33.2% from the year-ago quarter.
Coronavirus-induced stay-at-home orders, business shutdowns including temporary closure of retailers and cancellation of events globally hurt revenues.
Fujifilm Holdings Corp. Price, Consensus and EPS Surprise
Fujifilm Holdings Corp. price-consensus-eps-surprise-chart | Fujifilm Holdings Corp. Quote
Reduced demand for color paper and the spread of the coronavirus hurt the photo imaging business revenues.
In the second quarter, FUJIFILM launched instax mini 11 globally in March.
Healthcare & Material Solutions segment revenues were ¥217.1billion, down 4.6% from the year-ago quarter. However, Healthcare revenues increased 3.7% to ¥107.9 billion.
Medical systems revenues were negatively impacted by the coronavirus. However, sales of mobile X-ray-imaging systems and portable ultrasound diagnostic devices increased.
In the pharmaceutical business, revenues increased due to higher licensing revenues. FUJIFILM signed licensing contract with India-based Dr. Reddy (RDY - Free Report) related to deployment of anti-influenza virus drug Avigan.
Further, in the bio CDMO segment, contract-process development and manufacturing business for biopharmaceuticals progressed steadily. In June, FUJIFILM announced an investment of ¥100 billion in large-scale manufacturing facility in Denmark.
FUJIFILM also inked a deal with Novavax (NVAX - Free Report) for bulk manufacturing of drug substance for the latter’s coronavirus vaccine candidate.
Display materials revenues were unchanged year over year. Sales of dry films for tablets increased owing to increasing demand due to work-from-home and online learning, offset by lower sales of TAC films and others.
Additionally, in the electronic-materials segment, sales of Chemical Mechanical Planarization slurries primarily for logic benefited from strong demand for tablets and others used for work-from-home and online learning.
However, graphic-systems sales declined due to lower printing demand.
Document Solutions segment revenues were ¥189.4 million, down 18.7% from the year-ago quarter.
Office products and printers sales and volume increased in Japan in the quarter under review due to bulk deals. Print volume decreased due to coronavirus-led office shutdowns.
Operating Details
Operating income decreased 45.1% year over year to ¥20.4 billion.
Imaging Solutions segment’s operating loss was ¥3 billion against the year-ago quarter’s income of ¥4.5 billion.
Healthcare & Material Solutions segment’s operating income declined 4.7% to ¥18 billion. Moreover, Healthcare operating income declined 16.7% year over year to ¥4.4 billion.
Document Solutions segment operating income plunged 40.8% year over year to ¥12.9 million.
Balance Sheet & Cash Flow
As of Jun 30, 2020, cash and cash equivalents were ¥386.3 billion, down from ¥396.1 billion as of Mar 31, 2020.
Total debt was ¥562.3 billion as of Jun 30, compared with ¥624.2 billion as of Mar 31, 2020.
In the first quarter, cash flow from operating activities was ¥69.7 billion.
Guidance
FUJIFILM expects revenues of ¥2,200 billion in fiscal 2021, suggesting a decline of 5% year over year. Coronavirus is expected to hurt revenues by ¥220 million. Operating income is projected at ¥140 billion, indicating a 25% year-over-year decline.
Zacks Rank & A Key Pick
Currently, FUJIFILM has a Zacks Rank #4 (Sell).
Agilent (A - Free Report) is a better-ranked stock in the broader technology sector carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Agilent is set to report its quarterly results on Aug 18.
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Would you like to see the updated picks from our best market-beating strategies? From 2017 through Q2 2020, while the S&P 500 gained an impressive +44.0%, five of our strategies returned +50.9%, +93.8%, +122.2%, +153.0%, and even +156.8%.
This outperformance has not just been a recent phenomenon. From 2000 – Q2 2020, while the S&P averaged +5.5% per year, our top strategies averaged up to +51.7% per year.
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