Eastman Kodak Co. (EK) said Thursday its first-quarter loss narrowed to $115 million, however its’ stock fell more than 5 percent. Hit by carry-over restructuring charges, the photography products maker lost the equivalent of 40 cents a share in the January-March quarter, compared with a loss of $151 million, or 53 cents a share, a year earlier. Sales rose 1 percent to $2.093 billion from $2.08 billion. Excluding one-time items totaling $2 million, or 1 cent a share, operating losses came to $112 million, or 39 cents a share.
Kodak blamed the shortfall on higher-than-expected tax provisions and increased inkjet printer investments in both its consumer photography and commercial graphic communications businesses. Digital sales rose 10 percent to $1.366 billion from $1.245 billion a year earlier, while traditional film-based revenue continued to slump 13 percent to $724 million from $830 million.
Kodak still remains a perennial investment loser as it continues to tread water near its 52 week lows. Although the company continues to make a transition to the faster growing digital market its FusionIQ score of only 23 suggests it will be dead money for a while. We would continue to avoid EK shares.