Zacks Investment Research upgraded
Fujifilm Holdings Corporation
) to a Zacks Rank #1 (Strong Buy) on Jul 2, based on the
company's impressive fiscal 2013 results and a strong outlook,
Why the Upgrade?
Fujifilm reported impressive results for the fourth quarter
fiscal 2013 with its net income increasing 26.7% year over year
to ¥25.4 billion, on the back of improved revenues and margins.
Revenues in the reported quarter increased 4.6% year over year to
¥603.5 billion, resulting from the introduction of new products,
which were offset by a demand deterioration in Europe.
Fujifilm has been successfully launching new products to gain
a market share in the digital world. Moreover, the company
expects its pharmaceuticals business to gain traction in the
coming quarters and be a source of high revenue.
Fujifilm's revenues gained a great deal from its acquisitions.
Ever since the acquisition of Sonosite in March last year, it has
been a significant contributor to Fujifilm's revenues. The
acquired company contributed immensely to the Medical Systems
division of Information Solutions, driving the growth of the
segment in fiscal 2013. Moreover, the recent acquisition of the
BPO division of Australia-based Salmat last August is intended to
expand Fujifilm's reach in the Asia-Oceana region.
Based on these factors, Fujifilm expects to generate revenues
of ¥2,350.0 billion in fiscal 2014, increasing 6.1% year over
year. Operating income is expected to be ¥140.0 million, an
estimated 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.
Other Stocks to Consider
The following technology stocks with favorable Zacks Ranks are
performing well and are worth considering.
Alliance Fiber Optic Products Inc.
) carries a Zacks Rank #1 (Strong Buy)
) carries a Zacks Rank #2 (Buy)
) carries a Zacks Rank #2 (Buy).
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