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Kodak revenue falls 10% in first quarter, stock dips

EditorRachael Rajan
Published 09/05/2024, 21:48
© Reuters.
KODK
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ROCHESTER, N.Y. - Eastman Kodak Company (NYSE: KODK) disclosed its first-quarter financial performance for 2024, revealing a 10% decline in revenue compared to the same period last year.

Following the earnings release, Kodak's stock experienced a slight decrease of 1.48%.

The company's revenue stood at $249 million, down from $278 million in the first quarter of 2023. Despite the decrease in revenue, Kodak reported an adjusted earnings per share (EPS) of $0.30 for the quarter.

Kodak's gross profit saw a slight decrease of 2%, amounting to $49 million, compared with $50 million in the previous year. The gross profit percentage, however, improved from 18% to 20%, indicating a more efficient cost management. The GAAP net income for the company was $32 million, a marginal decline of 3% from the first quarter of the previous year.

Operational EBITDA experienced a more significant drop of 56%, falling to $4 million from $9 million in Q1 2023. This decline was primarily due to lower volumes and increased investment in information technology systems aimed at driving operational efficiencies. Despite these investments, Kodak managed to increase its quarter-end cash balance to $262 million, up from $255 million at the end of December 2023.

Jim Continenza, Kodak’s Executive Chairman and CEO, commented on the company's commitment to operational efficiency and innovation in its core businesses. "We continue to invest in innovation in our core businesses of print and advanced materials and chemicals," said Continenza. He also highlighted the company's plans to showcase new products at the upcoming drupa tradeshow in Germany.

David Bullwinkle, Kodak’s CFO, emphasized the improvement in gross profit percentage and the company's focus on streamlining operations. "Operational EBITDA for the quarter was impacted by significant investments in automation and simplification of back-office functions," Bullwinkle stated, outlining the company's strategy for the remainder of the year.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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