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FUJIFILM's Earnings Decline in Q2, Revenues Increase Y/Y

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FUJIFILM Holdings Corporation (FUJIY - Free Report) reported a second-quarter fiscal 2024 (ended Sept. 30, 2024) net income of ¥49.6 billion compared with ¥59.1 billion in the year-ago quarter.

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Revenues of ¥765.7 billion increased 5.2% year over year. The uptick was primarily driven by strong sales in Imaging and Electronics segments, along with favorable exchange rates.

Segment Details of FUJIY

In June 2024, the company established the Advanced Functional Materials division by integrating its display materials, industrial products and fine chemicals businesses.

In the fiscal second quarter, Healthcare segment revenues was ¥242.9 billion, up 0.6% from the year-ago quarter.

Within Healthcare, Medical Systems revenues rose 1.4% year over year to ¥166.9 billion. Robust sales of endoscopes (especially in Southeast Asia) and IVD systems were the primary drivers. Bio CDMO revenues were down 4.7% to ¥48.1 billion. Life sciences revenues were ¥27.9 billion, up 5.8% year over year.

In the Electronics segment, revenues amounted to ¥108.7 billion, up 31.4% year over year. Semiconductor Materials revenues rose 46.7% year over year to ¥63 billion, driven by the semiconductor market recovery and contributions from the semiconductor process chemicals business acquired from Entegris in October 2023. Advanced Functional Materials revenues soared 14.9% to ¥45.7 billion.

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

The Business Innovation Solutions segment’s revenues were ¥287.7 billion, declining 0.7% from the year-ago quarter’s figure. Office solutions revenues decreased 7.2%, whereas Business solutions and Graphic Communications’ revenues moved up 6.6% and 2.8% on a year-over-year basis, respectively.

The Imaging Solutions segment’s revenues were ¥126.5 billion, up 11% from the year-ago quarter’s level. Consumer Imaging and Professional Imaging revenues rose 7.6% and 17% on a year-over-year basis, respectively. This growth was driven by strong sales of instax instant photo systems along with robust sales of the entry-level instax mini 12 (launched in March 2024). Higher sales of digital cameras acted as a catalyst for the Professional Imaging segment.

FUJIY’s Operating Details

In the fiscal second quarter, selling, general and administrative expenses increased 9.4% to ¥199.3 billion. Research and development expenses jumped 1.5% to ¥40.4 billion.

Operating income increased 0.1% year over year to ¥73.4 billion owing to robust sales in electronics and imaging, along with favorable exchange rates that offset the impact of higher one-time costs in healthcare.

FUJIY’s Balance Sheet & Cash Flow

As of Sept. 30, 2024, cash and cash equivalents were ¥187.1 billion, down from ¥195.3 billion as of June 30, 2024.

Total debt was ¥619.8 billion as of Sept. 30, 2024, compared with ¥580.6 billion as of June 30, 2024.

FUJIFILM is planning an annual dividend of ¥60 per share, marking the 15th consecutive year of increase.

FUJIY’s Guidance Unchanged

FUJIFILM expects revenues of ¥3,150 billion for fiscal 2024, indicating growth of 6.4% year over year. The operating income is anticipated to be ¥315 billion, implying 13.8% growth. Net income is expected to increase 2.7% year over year to ¥250 billion.

Zacks Rank of FUJIY

Currently, FUJIFILM has a Zacks Rank #3 (Hold).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Companies in Tech Space

Seagate Technology Holdings plc (STX - Free Report) reported first-quarter fiscal 2025 non-GAAP earnings of $1.58 per share, beating the Zacks Consensus Estimate by 6.8%. The company reported a non-GAAP loss of 22 cents per share in the year-ago quarter. This improvement in the bottom line was driven by a favorable mix shift to mass-capacity products and a better pricing environment. Non-GAAP revenues of $2.168 billion beat the Zacks Consensus Estimate by 2.4%. The figure increased 49% on a year-over-year basis and 15% sequentially. Shares of STX have gained 43.3% in the past year.

Badger Meter, Inc (BMI - Free Report) reported EPS of $1.08 for the third quarter of 2024, beating the Zacks Consensus Estimate by 5.9%. Quarterly net sales were $208.4 million, up 12% from $186.2 million in the year-ago quarter. This uptick resulted from continued strong yet normalizing demand for its tailorable water management solutions. Shares of BMI have gained 57.8% in the past year. 

Iridium Communications (IRDM - Free Report) reported EPS of 21 cents for the third quarter of 2024, beating the Zacks Consensus Estimate by 5%. The company incurred a loss of a cent per share in the prior-year quarter. Quarterly revenues were $212.8 million, up 8% from the year-ago level, driven by strength across all three segments. The Zacks Consensus Estimate was pegged at $205.7 million. Shares of IRDM have lost 19% in the past year.


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