Things are going so bad for Kodak
After mending its oversights, the company expects to knock $0.07 per share off of last year's earnings and rub out as much as $0.12 a share from its 2003 showing. The company announced that it was having some accounting hiccups back in January.
Investors shouldn't be too concerned. These are strictly bean-stacking issues and won't have an impact on the company's reported revenue and cash flow for those periods. Shareholders know where their real concerns lie -- and Kodak knows it, too. The question is simple: Will the company be able to make a successful transformation from an old-fashioned film company into a digital photography pioneer?
The answer seems to be a resounding yes. Kodak has developed a suite of digital-photography products, and its photofinishing touch is still popular when it comes to ordering digital prints. The company shipped 4.9 million digital cameras last year, topping former market leader Sony
Hop on Kodak's lap, and it will tell you about how great the good old days were. Folks bought Kodak film and wound it up into their cameras. Every click advanced the frame. They would need to develop every snapshot to see which ones were worth keeping. Then they would have to buy a new roll of Kodak film and start the process all over again. Kodak was there, cashing in every step of the way.
Today is different. Rolls don't need to be replenished; the memory just gets deleted. You don't need to print every shot; you can cherry-pick which ones you want developed. And, lo and behold, printer companies like Hewlett-Packard
Kodak isn't just fighting Fuji
Thankfully, it's not all riding on consumer products. Kodak is also holding up quite well on the health-care side, thanks to its robust radiography business. So Kodak isn't going away, but it would do well to remember the key to taking a great picture: Focus before you shoot.
Thumb through these recent snapshots:
- The company is acquiring a taste for digital photography.
- It wasn't easy at first.
- Last year, it had to restructure to rid itself of that pesky red-eye syndrome.
- Stop! Don't shoot! Until you talk it over in our Photography discussion board, that is.
Longtime Fool contributor Rick Munarriz has never tried to shake it like a Polaroid picture. He does not own shares in any of the companies mentioned in this story. The Fool has a disclosure policy. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early.