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Fujifilm Posts Improved Y/Y Q4 Results, Shares Up

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Share price of Fujifilm Holdings Corporation (FUJIY - Free Report) rose 1.7% to close at $38.56 on May 4, 2015, after it reported fourth-quarter fiscal 2015 results on Apr 30. The company reported a net income of ¥24.7 billion ($207.2 million), up 33.4% year over year. The company’s earnings per American Depositary Receipt (“ADR”) were recorded at 43 cents for the quarter, up 16.2% from the year-ago tally.

For the whole fiscal year 2015, the company’s net income was ¥118.6 billion ($1079.1 million), up 46.4% from the year-ago value. Earnings per ADR for the entire year was $2.07 versus $1.26 accrued at the end of fiscal year 2014.

Revenues

Revenues for the fourth quarter climbed 1.8% year over year to ¥677.4 billion ($5685.6 million), backed by gradual recovery in the global economy. Sales in the company’s businesses like photo imaging, documents, electronics material and medical systems experienced remarkable growth in the quarter. For the entire fiscal year, Fujifilms’ top-line results were ¥2492.6 billion ($22688.9 million), up 2.2% from the year-ago tally.

Revenues from the Imaging Solutions segment came in at ¥85.1 billion ($714.6 million), accounting for 12.6% of quarterly total revenue. The Information Solutions segment contributed ¥270.9 billion ($2273.7 million) or 40.0% of total revenue; while the Document Solutions segment generated ¥325.6 billion ($2732.7 million) or 48.1% of total revenue.

Of the total revenue in the quarter, domestic revenues accounted for 43.2%; while international revenues contributed the remaining 56.8%.

Costs/Margins

Gross margin in fiscal fourth-quarter 2015 was 38.1%, up 220 basis points (bps) from the year-ago quarter. Selling, general and administrative (SG&A) and R&D expenses stood at ¥210.2 billion ($1764.0 million), representing 31.0% of the total revenue.

Balance Sheet

Exiting fourth-quarter of fiscal 2015, Fujifilm had cash and cash equivalents of ¥726.9 billion ($6076.1 million), up 20.2% from the value recorded on Mar 31, 2014. The company’s long-term debt stood at ¥313.0 billion ($2616.8 million), edging down 0.6% from fiscal 2014.

Cash flow

For fiscal 2015, Fujifilms’ net cash from operating activities totaled ¥263.7 billion ($2400.6 million), while its capital expenditure was ¥56.9 billion ($518.3 million).  

Outlook

Fujifilm expects to earn revenues worth ¥2580 billion in fiscal 2016, reflecting a year-over-year hike of 3.5%. Operating income is projected at ¥190 billion, depicting an increase of 10.2% from fiscal 2015 level. Moreover, the company estimates its net income for the coming fiscal at ¥120 billion, up 1.2% year over year. This will lead to earnings of ¥248.85 per share.

Stocks to Consider

Fujifilm currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the industry includes Alcatel-Lucent , Sphere 3D Corp. and ARM Holdings plc . All the three stocks hold a Zacks Rank #2 (Buy).




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