Eastman Kodak Company (NYSE: EK) Up On Return To Profitability

Eastman Kodak Company (NYSE: EK) had a bright start of the day on Thursday, as the company recently posted Q4 profit and demonstrated a possible longer term stability is underway. [BANNER]

With $443 million sitting on the bottom line ($1.40 per share) Kodak made their first profit after more than a year’s break. The result surprised analysts big time, as expectations were in range of $0.18 per share. The company’s share price has in turn surged tens of percents with a breakaway gap forming on Thursday.

Kodak’s operating revenue has not increased much – the reported 6% growth is somewhat average. $2.58 billion revenue was mostly influenced by increased printer sales and better costs of digital imaging inventions.

Profitability was achieved under increased gross profit margin which went up to 34.4% from just over 20% recorded last year. The increase was mostly influenced by non-recurring licensing agreements (8%) followed by increased in productivity on item sales.

Adjusting to the updated financials, the stock price should continue increasing even though there’s some redistribution between investors stalling the price movement as people are taking profits. Currently there is a strong bullish investor sentiment (as provided by MarketWatch) associated with this stock and it’s unlikely it will top out quickly.

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