Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Eastman Kodak Company (NYSE: KODK) -- Ignore unavailable to you. Want to Upgrade?

To: Josef Svejk who wrote (76)	10/8/1998 7:26:00 AM
From: Wiski1313	Respond to of 484

Svejk, Heres a report outof the Wall Street Journel this morning. Steady Share of Film Sales For Kodak Boosts Outlook By ALEC KLEIN Staff Reporter of THE WALL STREET JOURNAL Eastman Kodak Co.'s share of U.S. film sales has remained intact for months, analysts say, leading to more-optimistic views of the company's near-term prospects. Although Kodak isn't immune to the overseas downturns afflicting other U.S. multinationals, economic travails in Japan may be more worrisome for its chief rival, Fuji Photo Film Co., contributing to lessened pricing aggressiveness by the Japanese company in the U.S. market. After a lengthy period of trading price cuts with Fuji and losing sales in the U.S., Kodak has seen its domestic share of film sales stabilize in recent months at about 73%, analysts say. That stability, together with aggressive cost-cutting at Kodak, has led to upgraded earnings forecasts for Kodak in recent months. Kodak and Fuji declined to comment. The consensus among 14 analysts followed by First Call is that Kodak, based in Rochester, N.Y., will report third-quarter earnings of $1.20 a diluted share next week, up from the consensus in July of $1.10 a share. A year earlier, the company reported third-quarter net income fell 43% to $232 million, or 71 cents a diluted share, on revenue of $3.77 billion. Wall Street forecasts also see Kodak's revenue declining by about 1% to 2%, when adjusted for asset sales, because of weak demand in some foreign markets. A solid earnings report would sustain an upswing that began with a surprisingly good second quarter. But whether this is a harbinger of a long-term turnaround for the photography giant, which has been coping with the costs of high-technology investments and competition here and abroad, remains to be seen. B. Alex Henderson of Prudential Securities Inc. says Kodak's 73% share of 35-millimeter, advanced-photo-system film and one-time-use cameras held steady from May to mid-September. That represents an erosion of two to three percentage points from year-ago figures. After registering enormous gains last year, Fuji's market share has hovered at about 15% to 16% in the past several months, compared with about 14% to 15% a year ago. Mr. Henderson attributed the stabilization to several factors. Kodak, he said, demonstrated "bravado" in fighting Fuji, cutting film prices in response to Fuji discounts that began in the summer of 1997. Fuji maintains it has never engaged in a price war with Kodak, and has said the drop in its film prices last year was the result of getting rid of excess inventory. Mr. Henderson also says Kodak is benefiting from an "abated" price war. Because Fuji's home economy -- Japan -- "went to hell in a hand basket" during the spring and summer, Mr. Henderson said, "Fuji reduced its willingness to fight wars in other locations." "Going forward, if you can have a stable market share, your gross margins should improve," says analyst Gary Schneider of Bear, Stearns & Co. This past May, Kodak launched aggressive summer rebates in the U.S. in the form of in-store and newspaper coupons. Around the same time, Kodak announced a new marketing strategy, placing film in three pricing tiers, to appeal to different consumers. Kodak's third-quarter earnings will also benefit from continued cuts in operating costs, in part through layoffs, and improved productivity in its digital-imaging business, analysts say. They are also looking for positive currency-translation effects of a weakened U.S. dollar in some foreign markets. Looks like markets here are ready to tank this morning. I dont know how Kodak will respond after this article. Its sounds good for earnings which i think will be posted on the 13th of this month. Notice how Kodak was strong yesterday because of the dollars drop. (better pricing for overseas market) Still however are markets here look to be in trouble. I will buy if a buying opporntunity is presented this week.