There may be positive news from Kodak these days, but investment ratings firm Moodyâ€™s is not impressed; it doubts the fundamental operating performance of the company and is even considering a possible downgrade.
“Based on Moody’s estimates, the company achieved its 2006 guidance for digital revenue growth and cash flow only through non-recurring licensing arrangements and the company did not meet its guidance for digital earnings” commented John Moore, VP/Senior Analyst of the ratings firm. He noted however that Kodak delivered on its goal set in early 2006 to reduce debt by $800 million.
Kodak earlier reported about 4% digital revenue growth for 2006 but Moodyâ€™s estimates only 2% by excluding non-recurring licensing arrangements.
The market however seemed to agree with Kodak; its shares closed up 34 cents at $25.86.