Kodak (EK) watcher:
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EASTMAN KODAK (EK) 83 9/16. Maybe George Fisher has the answer - just keep cutting costs dramatically. Before the open Tuesday, imaging company Eastman Kodak (EK) reported third quarter earnings of $1.21 per share. That was a penny ahead of expectations, and up 70% on a per share basis from the year-ago $0.71 per share. Revenue was down not only 10.1% from the year ago level, but is still over 10% below the third quarter level of 1995! This hasn't hurt the stock price, however. EK took a dive late last year, but has been on the rise this year, making it the stock a substantial outperformer. The market seems more than happy to see profits go up through cost cutting. The future apparently holds more of the same.
In the press release, Chairman and CEO George Fisher said that he is "not satisfied with the sales performance" but sees little change near term. Therefore, the focus will continue to be on cost controls and improvements in manufacturing productivity. This will not be a surprise to the market. Wall Street has a positive view on the stock, giving it an above average rating with 2 strong buys, 7 moderate buys, 1 hold, and 1 strong sell, according to Zacks. (If it weren't for that one sell recommendation, the rating would be well above average). Today's report will not change expectations much, and should keep Wall Street positive on the stock. |
