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.

We recently upgraded our recommendation on Fujifilm Holdings Inc. (FUJIY - Analyst Report), a Japan-based company, from Underperform to Neutral based on solid market fundamentals.

In the last reported quarter, the company reported an increase in the medical systems and life sciences business. The Document Solutions business saw a marginal increase in its revenue; overshadowed by a weak European economy. In addition, the company is currently expanding outside Japan to increase its revenue besides augmenting its product and service portfolio.

The company’s efforts to reduce costs in order to maintain and in turn increase margins seem to pay off. Despite a steep rise in raw material costs, the gross margin for the company decreased by a meager 50 basis point in the third quarter of fiscal 2013 as compared to the year-ago quarter. Fuji was able to pull off a high net income of $101.3 million, far exceeding $5.0 million earnings reported in the year-ago quarter.

Consequently, the company is expected to perform in line with the broader market, thus inducing a Neutral recommendation

However, the company seems to fall much below the initial revenue generation in the traditional imaging business in the world of digitalization. Moreover, cut-throat rivalry from competitors like Canon Inc. (CAJ - Snapshot Report), who have been continuously developing, launching and marketing hi-tech digital expertise, further threatens the company’s traditional businesses. Also the risk of overcapacity in photo-imaging and photographic films sector is likely to depress profit.

The current Zacks Consensus Estimate for fiscal 2013 is $1.27, representing a year-over-year increase of 14.4%. Estimate for fiscal 2014 is $1.50, reflecting annual growth of 18.1%.

The stock currently bears a Zacks #3 Rank (Hold), while its prime competitors Canon has a Zacks #4 Rank (Sell) and Photronics Inc. (PLAB - Snapshot Report) has a Zacks #3 Rank (Hold).

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%