NEW YORK - Kodak, the former industry titan that originally invented the digital camera only to be surpassed by many companies in the digital field reported earnings today. Kodak reported a loss $43 million or 16 cents a share but investors cheered the strong results. On the bright side the company had earnings from operations of $28 million but they reported a loss due to a larger provision for taxes
Kodak reports are often confusing to understand because they state how much each quarter improved by without often stating the original amount. This makes it easy for them to impress because their results in years prior are at a very low benchmark number to beat. Consumer digital imaging group saw 25% revenue increase from the period before. This segment is likely to be the key driver of Kodak for future profitability. The company continues to target a loss of $50-$150 million for the year, but this number is extremely confusing. The company states this number is representative from continuing operations yet all the numbers in this number are not all from continuing operations. Some of these numbers are from one time gains. Kodak's own guidance points to a 56 million loss to a profit of 44 million in Q4 but no one is sure how much restructuring charges are in this number, how much taxes etc. Still the way Kodak reports its earnings should leaves investors skeptical of its future.