Shares of Eastman Kodak Co. dropped more than 10 percent by midday Thursday after the company missed Street expectations for second-quarter earnings and saw its profit decline, excluding onetime charges and gains.
Kodak stock (NYSE: EK) was trading midday at $14.13, down from Wednesdayâ€™s close of $15.77. The stock had dropped as low as $13.78 during the morning.
Kodak officials pointed to its continued digital growth, but a combination of rising raw materials costs and a steeper-than-expected drop in its traditional film business hurt net income. The company also increased investments in some products.
The company reported second-quarter earnings from continuing operations of $200 million, or 66 cents a share, compared with a loss of $154 million, or 53 cents a share, a year ago. The results, however, include a $270 million gain from interest earned on a tax settlement with the Internal Revenue Service.
Excluding onetime gains and charges of $245 million, or 79 cents a share, the company would have registered a loss of $45 million, or 13 cents a share. That compares with a profit of $112 million, or 39 cents a year ago, excluding restructuring and other charges and gains.
Analysts expected earnings of 16 cents a share on sales of $2.44 billion, Thomson Reuters reported.
Sales rose 1 percent to $2.49 billion, including a 6 percentage point boost from the impact of currency exchange.
Digital revenue rose 10 percent to $1.64 billion. The film, photofinishing and entertainment group revenue totaled $847 million, a 14 percent decline.
â€œOur second quarter represents another step in our journey to create a growing, profitable Kodak,â€ said Antonio Perez, chairman and CEO, in a statement. â€œWe delivered another quarter of growth, which reinforces our confidence in the promise of our digital franchise.â€
Segment results for the quarter:
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