Kodak Q3 revenue rises 3% as AM&C segment grows

What happened

Eastman Kodak's third-quarter revenue rose 3% from a year earlier to $276 mln, while net income increased to $21 mln. Advanced Materials & Chemicals segment sales grew 21%, but Print segment revenue declined. Revenue fell short of the $311 mln estimate from one analyst.

Confirmed

Global impact / market context

The mixed result shows Kodak's growth depends on Advanced Materials & Chemicals, which means its chemicals business, while its core printing business shrinks. Higher pricing and volume lifted profit, but rising raw material and selling costs partly offset those gains, and the revenue miss may weigh on investor confidence.

Analyst inference

Analysts set a median 12-month price target of $12.00, about 36.5% above the November 2 closing price of $8.79, suggesting they expect recovery. Still, the revenue miss against a single analyst estimate shows expectations were not met, and peers reported sales growth, highlighting competitive pressure.

Analyst inference

What to watch

1. Watch whether Kodak finishes the year with profitable growth, as the company says it is focused on investing in core businesses and delivering profitable growth for the full year. Confirmed
2. Watch whether Kodak invests more capital spending in its Advanced Materials & Chemicals business, since management says it is investing in core businesses but gives no specific spending figure. Proposed
3. Watch raw material and selling costs, which is the expense of running sales operations, because these increased and partly offset profit gains from higher pricing and volume in the quarter. Analyst inference

Evidence

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