Credit: Shutterstock photoWe have issued an updated research report on premium multinational firm FUJIFILM Holdings CorporationFUJIY on Oct 30, 2015.
Scopes for Improvement
Gradual economic recovery and escalation in demand from certain emerging and developed countries are expected to support Fujifilm's growth in the upcoming quarters. The company's photo imaging, graphic systems, medical systems and documents businesses have been growing steadily over the past fiscal year.
Based on these positives, the company expects revenues worth ¥2,580 billion in fiscal 2016. The revenue estimate reflects a 3.5% year-over-year hike. Moreover, projecting a 1.2% year-over-year increase in net income, the company expects earnings of ¥248.85 per share for the upcoming fiscal year.
Also, in order to reap greater revenues and profits in the future, Fujifilm is expanding its popular business lines in countries like Indonesia and China, which experience rising proportion of middle income households. At the same time, introduction of innovative products and market campaigns on part of the company will likely generate higher revenues, going forward.
Few Hints of Issues
We believe that this Zacks Rank #1 (Strong Buy) stock would continue to improve its top- and bottom-line results in the quarters ahead. However, scopes for improvement might be limited as the company is currently faced with certain headwinds. Fujifilm's international operations are exposed to significant market uncertainties.
Any unfavorable changes in political, environmental, social and economic aspects of international markets may adversely affect the company's top and bottom lines in the upcoming quarters. Moreover, operating in a highly competitive industry, Fujifilm faces extensive market rivalry and subsequent risk of market share loss, as any strategic scheme on part of its rivals might hurt its revenues and margins in the to-be-reported quarters.
Other Stocks to Consider
Fujifilm currently sports a Zacks Rank #1 (Strong Buy). Other well-ranked stocks in the industry include Agilent Technologies Inc. A , ACI Worldwide, Inc. ACIW and ARI Network Services Inc. ARIS . All three stocks hold a Zacks Rank #2 (Buy).
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FUJIFILM HLDGS (FUJIY): Free Stock Analysis Report
AGILENT TECH (A): Free Stock Analysis Report
ACI WORLDWIDE (ACIW): Free Stock Analysis Report
ARI NETWORK SVC (ARIS): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
