Back to top

Image: Bigstock

Fujifilm (FUJIY) Braves Currency Headwinds on Growth Drivers

Read MoreHide Full Article

We issued an updated research report on premium multinational firm, FUJIFILM Holdings Corporation (FUJIY - Free Report) , on Jun 16.

Existing Scenario

Fujifilm has been enhancing its competency by commencing new and advanced businesses through strategic mergers and acquisitions, as well as flexible rearrangement of its internal resources and organization. It also intends to boost near-term profitability on the back of greater operational efficiency. Under this, the company checks the effectiveness of its research and development expenses, realigns production and development systems, and constantly tries to minimize input costs and equipment manufacturing expenses.

Moreover, Fujifilm noted that it would soon introduce the “Work Style Innovation” program that would help augment the productivity of its workforce. The company anticipates accruing operating income worth ¥185 billion in fiscal 2018, estimating a 7.4% of year-over-year increment. Notably, it intends to satisfy the interests of shareholders through improved dividend and share buyback offers.

However, over the last three months, Fujifilm’s shares lost 9.69%, wider than the loss of 8.11% incurred by the Zacks categorized Semiconductor Equipment - Photomasks industry.

The company generates a large proportion of its revenues from international operations. However, overseas business expansion exposes Fujifilm to risks of unfavorable foreign current translation. For instance, it noted that the top-line performance of its Imaging Solutions and Information Solutions segment was hurt due to appreciation of the Japanese Yen in fiscal 2017. 

In addition, depreciation of few local currencies in the Asian end markets weighed over the revenues of the company’s Document Solutions segment in the fiscal 2017. Negative foreign currency impact might continue to depress this Zacks Rank #3 (Hold) company’s results in the upcoming quarters.  

Stocks to Consider

Some better-ranked stocks in the industry are listed below:

Applied Optoelectronics, Inc. (AAOI - Free Report) generated an outstanding average positive earnings surprise of 118.33% over the trailing four quarters and currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Agilent Technologies, Inc. (A - Free Report) has an average positive earnings surprise of 11.68% for the last four quarters and carries a Zacks Rank #2 (Buy), at present.

Axcelis Technologies, Inc. (ACLS - Free Report) also holds a Zacks Rank #2 and has an impressive average positive earnings surprise of 135.78% for the past four quarters.

3 Top Picks to Ride the Hottest Tech Trend

Zacks just released a Special Report to guide you through a space that has already begun to transform our entire economy...

Last year, it was generating $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for those who make the right trades early. Download Report with 3 Top Tech Stocks >>


Zacks' 7 Best Strong Buy Stocks (New Research Report)


Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.


Click Here, It's Really Free

Published in