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FUJIFILM's (FUJIY) Q3 Earnings and Revenues Increase Y/Y

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FUJIFILM Holdings Corporation (FUJIY - Free Report) reported a net income of ¥60.2 billion in the fiscal third quarter (ended Dec 31, 2023) compared with ¥58.5 billion in the year-ago quarter.

Revenues of ¥766.9 billion increased 3% year over year. The uptick was due to revenue growth in Medical Systems, Business Solutions and Consumer Imaging.

Fujifilm Holdings Corp. Price, Consensus and EPS Surprise

Fujifilm Holdings Corp. Price, Consensus and EPS Surprise

Fujifilm Holdings Corp. price-consensus-eps-surprise-chart | Fujifilm Holdings Corp. Quote

Segment Details

For the fiscal third quarter, Healthcare segment revenues came in at ¥242.5 billion, up 10% from the year-ago quarter’s levels.

Within Healthcare, Medical Systems revenues rose 6% year over year to ¥164.7 billion. Bio CDMO revenues decreased 27.4% to ¥50.2 billion. Life sciences increased 6.9% to ¥27.6 billion.

The Materials segment's revenues increased 4.4% to ¥175.1 billion. Electronic Materials and Display Materials revenues increased 18.4% and 11.1% on a year-over-year basis, respectively. Graphic communication and other advanced materials revenues decreased 3.3% and 1.5% on a year-over-year basis, respectively.

The Business Innovation Solutions segment’s revenues were ¥199.9 billion, down 7.3% from the year-ago quarter’s figure. Office solutions revenues decreased 13.6%, and Business solutions revenues moved up 6.7% on a year-over-year basis.

The Imaging Solutions segment’s revenues were ¥149.4 billion, up 6.5% from the year-ago quarter’s levels. Consumer Imaging and Professional Imaging revenues rose 8.7% and 1.9% on a year-over-year basis, respectively.

On Feb 8, 2024, the company announced a stock split to lower the minimum investment price and expand the investor base.  Each share that is owned by shareholders is listed or registered in the closing register of shareholders as of Mar 31, 2024, will be divided into three shares. Following that, the total number of issued shares after the stock split will rise by 829,251,456.

The company also announced that it will partially amend its Articles of Incorporation in connection to the stock split. The company will increase the total number of shares issuable by the company from 800,000,000 shares to 2,400,000,000 shares.

Operating Details

For the nine months ended, selling, general and administrative expenses increased 5.3% to ¥552.2 billion. Research and development increased 2.4% to ¥117.7 billion.

Operating income increased 3% year over year to ¥79.4 billion.

Balance Sheet & Cash Flow

As of Dec 30, 2023, cash and cash equivalents were ¥242.9 billion, down from ¥322.2 billion as of Sep 30, 2023.

Total debt was ¥609.3 billion as of Sep 30, 2023, compared with ¥547.2 billion as of Sep 30, 2023.

Guidance

FUJIFILM expects revenues of ¥2,950 billion for fiscal 2023, indicating growth of 3.2% year over year. The operating income is projected to be ¥290 billion, suggesting 6.2% year-over-year growth. The net income is expected to increase 2.5% year over year to ¥225 billion.

Zacks Rank & Other Stocks to Consider

Currently, FUJIFILM has a Zacks Rank #2 (Buy).

Some other top-ranked stocks worth considering in the broader technology space are Itron (ITRI - Free Report) , Woodward (WWD - Free Report) and Watts Water Technologies (WTS - Free Report) . Woodward and Itron sport a Zacks Rank #1 (Strong Buy), while Watts Water Technologies carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Itron’s 2023 EPS has remained unchanged in the past 60 days to $2.88. ITRI’s long-term earnings growth rate is 23%.

Itron’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 289.3%. Shares of ITRI have gained 33.1% in the past year.

The Zacks Consensus Estimate for Woodward’s 2024 EPS has inched up 5.7% in the past 60 days to $5.20. WWD’s long-term earnings growth rate is 15.5%.

Woodward’s earnings beat the Zacks Consensus in each of the last four quarters, the average surprise being 27.2%. Shares of WWD have gained 31% in the past year.

The Zacks Consensus Estimate for Watts Water Technologies 2023 EPS has improved 0.1% in the past 60 days to $8.09. WTS’s long-term earnings growth rate is 7.8%.

WTS’ earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 11.8%. Shares of WTS have soared 23.2% in the past year.

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