Eastman Kodak Earnings Preview

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Eastman Kodak (OTC: EK) will unveil its latest earnings on Thursday, Jan. 26. Eastman Kodak deals in image capture and output devices, consumables, and systems and solutions for consumer, business, and commercial printing applications.

What our community says: 
CAPS All-Stars are split on EK, with 46.6% rating it an "outperform" and 53.4% giving it an "underperform" rating. Fools are bearish on Eastman Kodak  and haven't been shy with their opinions lately, logging 515 posts in the past 30 days. Eastman Kodak's bearish CAPS rating of one out of five stars falls short of the Fool community sentiment.

Management:
Revenue has fallen for the past three quarters. The company's gross margin shrank by 12.9 percentage points in the last quarter. Revenue fell 16.8% while cost of sales fell 2.1% to $1.25 billion from a year earlier.

Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows gross, operating, and net margins over the past four quarters.

QuarterQ3Q2Q1Q4
Gross Margin14.2%14.2%9.5%19.6%
Operating Margin(11.9%)(11.7%)(17.2%)(35.4%)
Net Margin(15.2%)(12.1%)(18.6%)(30.9%)

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Earnings estimates provided by Zacks.

At the time this article was published

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