Back to top

Analyst Blog

On Aug 19, 2013, we upgraded our recommendation on Fujifilm Holdings Corporation (FUJIY - Analyst Report) to Outperform from Neutral, based on the company’s solid fiscal first-quarter 2014 performance.

Why the Upgrade?

Fujifilm reported strong results for the first quarter of fiscal 2014, with net income of ¥15.0 billion ($151.4 million), increasing 497.0% year over year, in local currency. Revenues also increased 9.7% year over year to ¥568.7 billion ($5,759.4 million). The increase in revenues was on the back of strong sales in the documents business, medical systems business as well as the flat panel display business.

Fujifilm’s pharmaceuticals business witnessed a double-digit year-over-year hike in the quarter, pushing the total sales up. The business is expected to grow further in the coming quarters.

Additionally, the company’s inorganic growth has been tremendous in the reported quarter. The Sonosite acquisition in Mar 2012 contributed immensely to the Medical Systems division of Information Solutions, driving the segment’s growth in fiscal 2013 as well as fiscal first quarter of 2014.

The company recently launched products ranging from lenses to printers. In order to tap the growth potential of the lens business, the company started operations of its new optical lens factory, FUJIFILM Optics Philippines Inc., in Jul 2013.

Also, Fujifilm is managing its costs efficiently, leading to higher margins. This, we believe, will position Fujifilm as a sustainable and profitable corporation with a larger market share in the quarters ahead.

Other Stocks to Consider

Fujifilm currently carries a Zacks Rank #1 (Strong Buy). Other stocks worth a watch in the technology industry are Alliance Fiber Optic Products Inc. (AFOP - Snapshot Report), Axcelis Technologies Inc. (ACLS - Snapshot Report) and Coherent Inc. (COHR - Snapshot Report). While Alliance Fiber carries a Zacks Rank #1 (Strong Buy), Axcelis Technologies and Coherent carry a Zacks Rank #2 (Buy).

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

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 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
CENTURY ALU… CENX 22.55 +4.59%
PLANAR SYST… PLNR 4.32 +4.10%
ERBA DIAGNO… ERB 2.89 +3.58%
MALLINCKROD… MNK 71.73 +3.19%
GTT COMMUNI… GTT 12.00 +3.00%