On Feb 27, 2014, we issued an updated research report on
Fujifilm Holdings Corporation
). The company delivered robust net income in the third quarter
of fiscal 2014 which increased 68.9% to $309.1 million year over
year. Margins increased year over year, led by an increase
The overseas operation of the company accounted for roughly
59.5% of the total revenue for fiscal third quarter. The company
has been reaping the benefits of falling yen exchange rate which
Fujifilm is attempting to gain greater market share through
geographical expansion as well as product launches in all the
segments. In the third quarter of fiscal 2014, the company
launched products ranging from lenses to printers.
Additionally, management provided an encouraging outlook for
fiscal 2014. Total revenue is expected to be ¥2,400.0 billion,
reflecting a year-over-year increase of 8.4%and above the
previous expectation of ¥2,350.0 billion. Fujifilm expects
operating income to increase 22.7% year over year to ¥140.0
million. Moreover, the company estimates its net income for the
coming fiscal year to be ¥70.0 billion, increasing 29.0% year
The strong results and guidance led to positive estimate
revisions for fiscal 2014 over the past 60 days. This led to a
significant increase of 6 cents in the Zacks Consensus Estimate
for fiscal 2014, which now stands at $1.50 per share.
Key Picks from the Sector
Fujifilm currently carries a Zacks Rank #3 (Hold). Other
stocks those are worth considering within this sector include
Advanced Energy Industries, Inc.
Ultra Clean Holdings Inc.
). All these stocks carry a Zacks Rank #2 (Buy).
ADV ENERGY INDS (AEIS): Free Stock Analysis
FUJIFILM HLDGS (FUJIY): Free Stock Analysis
KLA-TENCOR CORP (KLAC): Free Stock Analysis
ULTRA CLEAN HLD (UCTT): Free Stock Analysis
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