FUJIFILM (FUJIY) to Report Q3 Earnings: What's in the Cards?

FUJIFILM FUJIY is set to report third-quarter fiscal 2020 results on Feb 6.

The Zacks Consensus Estimate for third-quarter earnings has been steady at 90 cents per share over the past seven days, suggesting growth of 20% from the year-ago quarter’s reported figure.

Meanwhile, the consensus mark for revenues stands at $5.70 million, indicating an increase of 2.4% from the year-ago quarter’s reported figure.

Notably, the company’s earnings missed the Zacks Consensus Estimate in three of the trailing four quarters, the average negative surprise being 26.9%.

In second-quarter fiscal 2020, FUJIFILM reported earnings of $1.06 per share that missed the Zacks Consensus Estimate by 12.4%. Moreover, revenues of $5.56 billion lagged the consensus mark of $5.64 billion.

In domestic currency, FUJIFILM reported a net income of ¥46.48 billion, down 25.1% from the year-ago quarter. Revenues decreased 1.8% year over year to ¥596.81 billion.

Fujifilm Holdings Corp. Price and EPS Surprise

Fujifilm Holdings Corp. Price and EPS Surprise

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

 

Let’s see how things are shaping up for the upcoming announcement.

Factors to Consider

FUJIFILM is expected to have benefited from the robust performance of the Healthcare business in the to-be-reported quarter, backed by acquisitions carried out over the trailing 12-months.

Moreover, the company’s heavy investments in gene therapy, one of the key growth areas in the Bio Contract Development and Manufacturing Organization business and the regenerative medicine business, have expanded growth opportunities in healthcare.

Notably, in the last reported quarter, Healthcare revenues grew 6.7% at constant currency (cc) on a year-over-year basis to ¥126.3 billion.

Furthermore, investments to expand facilities for the development, manufacture and quality assurance of cutting-edge semiconductor materials are expected to have aided the top line.

However, a slowing economy in China due to lower consumption growth and weakness in the Imaging Solutions and Documents Solutions businesses is expected to have dampened the company’s revenues.

Notably, in the last reported quarter, Imaging Solutions revenues were ¥79.5 billion, down 5.6% from the year-ago quarter at cc. Document Solutions revenues were ¥252.26 billion, up 0.1% from the year-ago quarter at cc.    

Key Q3 Developments

On Dec 18, FUJIFILM announced an agreement with Hitachi to acquire the latter’s Diagnostic Imaging-related business.

Moreover, on Nov 18, FUJIFILM announced the beginning of a U.S. Phase I clinical trial of FF-10850, an anti-cancer agent targeting advanced solid tumors. The study will evaluate the safety, tolerability, pharmacokinetics and preliminary efficacy of FF-10850.

Further, on Nov 8, FUJIFILM completed the acquisition of Xerox’s 25% stake in Fuji Xerox. This transaction led to the company’s 100% ownership of Fuji Xerox.

What Our Model Says

According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

FUJIFILM has a Zacks Rank #3 and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are a few companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases:

Perion Network PERI has an Earnings ESP of +22.58% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.    

Bruker Corporation BRKR has an Earnings ESP of +0.86% and a Zacks Rank #2.

CDW Corporation CDW has an Earnings ESP of +2.34% and a Zacks Rank #2.

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