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The Daily Dow LEXINGTON, Ky. (Apr. 16): A major Kodak moment for the Foolish Four today. Eastman Kodak powered ahead nearly 5% after posting better-than-expected earnings of $0.80 a share versus $0.77 in the year-ago quarter. Analysts were only expecting $0.76, so the surprising strength of the numbers lifted the stock considerably today.
Kodak also announced that its stock buyback program is proceeding ahead of schedule. If the company's buying more shares more quickly than it anticipated, can it be read as anything other than the company's vote of confidence for Kodak's future? CFO Harry Kavetas believes the $2 billion buyback will be completed a year or two before the target date in 2000. With the next buyback phase beginning in October, Kodak's buyback program averages about 14% of the daily volume in Kodak stock. Think these guys are following the Dow Approach?
Morgan Stanley analyst Brenda Landry said Kodak's share profits matched her forecast and she was maintaining a full-year profit forecast for the company of $4.40. She said the company's performance was strong, even as it spent substantially in the quarter to promote its Advantix line of cameras and films due to go on sale next week.
Advantix is Kodak's brand for the new Advanced Photo System (APS), which consists of new high-tech cameras and film processing which was developed by a consortium of five leading world camera companies. Right now Kodak can't meet the high dealer demand for the new cameras and film which are scheduled to go on sale next week.
In other Foolish Four news, 3M announced the new name for its data storage and imagining businesses, which are being spun off later this year. The new company will be called Imation and William Monahan, a senior executive at 3M will be the new company's CEO.
Earnings season has begun in earnest and the early picture suggests a fairly strong quarter. Stay tuned to MF Templar's Stock research area for the latest reports as earnings roll in.
Transmitted: 4/16/96 6:04 PM
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THE FOOLISH FOUR (4/16/96) |
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