Q4 2023 Earnings Summary
Reported on Mar 14, 2024 (After Market Close)
Pre-Earnings Price$4.99Last close (Mar 14, 2024)
Post-Earnings Price$4.96Open (Mar 15, 2024)
Price Change
$-0.03(-0.60%)
- Improved Financial Performance: Kodak reported a net income of $75 million for 2023, an improvement of $49 million from the prior year. Operational EBITDA increased by $27 million or 150%, indicating strong operational performance.
- Investments in Growth Initiatives: The company is investing in long-term growth initiatives in Advanced Materials and Chemicals (AMC), including the construction of a CGMP facility to expand into manufacturing diagnostic testing and reagent solutions, addressing the growing demand for FDA-certified test reagents made in the USA.
- Focus on Innovation and Efficiency: Kodak increased its gross profit percentage to 19% in 2023 compared to 14% in the prior year, despite rising costs and difficult macroeconomic conditions globally. The company is also investing in innovation across its product portfolio, including traditional and digital print solutions, and is committed to being the last manufacturer of film to meet growing demand.
- Decreasing Revenue Trend: Kodak's revenues decreased by $30 million or 10% in Q4 2023 compared to the same quarter in the previous year, from $305 million to $275 million. For the full year 2023, revenues declined by $88 million or 7%, from $1.205 billion to $1.117 billion. This consistent decline in revenue may signal challenges in generating sales growth.
- Decline in Operational EBITDA in Q4: Operational EBITDA for Q4 2023 was $2 million, a decrease of $5 million from $7 million in Q4 2022. This significant drop suggests shrinking profitability in the most recent quarter.
- Higher Operating Costs Impacting Profitability: The company reported that operational EBITDA was unfavorably impacted by higher costs associated with investments in IT systems and organizational restructuring. Increased expenses without corresponding revenue growth may pressure future earnings.
Research analysts covering EASTMAN KODAK.