EASTMAN KODAK


              9/17/93 52-Wk-Rng FY/Q  EPS93  EPS94 PE94 NxtQtr LyQtr
Eastman Kodak   59.88   62-39   12/3   3.35   4.50 13.3   0.95  1.01 EK


.    Continue to recommend purchase.
.    Reducing 1993 estimate to $3.35 from $3.70 and 1994 to $4.50 from
     $4.60.
.    Sluggish July-August sales and negative currency adjustments account
     for the revisions.
.    Third quarter estimate reduced to $0.95 from $1.20-$1.25 versus $1.01
     last year.
.    New CEO appointment unlikely for at least a month.

On Friday, Kodak released sales results for July-August which indicated sales
for this period declined approximately 5% versus expectations  of a 1% decline
for the third quarter.  In the second quarter, Kodak sales declined 1%.  Kodak
also gave some detail on sales by group.  The imaging and information groups
had a 5% sales decline which approximated the overall company.  Health revenues
were off 1%-2% versus a 5% increase in the second quarter.  Chemical revenues
were flat versus a 6% increase in the second quarter.  While monthly results
for Kodak can be misleading, it is clear the July-August shortfall will be
difficult to offset in September.  A full year estimate of $3.35 per share
implies fourth quarter earnings of $0.81 per share versus $0.69 last year.
There are several factors which should allow the fourth quarter comparison to
show improvement including a more moderate currency impact, increased cost
cutting benefits and, hopefully, a better economy.  In the second quarter,
currency negatively impacted earnings by $0.04 per share which could increase
to $0.12 in the third quarter.  The fourth quarter should be in the $0.06-$0.09
range.  Earlier this year, Kodak announced a $200 million pretax or $0.35-$0.40
aftertax cost cutting program with the bulk of this pick up slated for the
second half.  While there could be some slippage in the overall savings to be
realized, analysts still expect the fourth quarter cost savings contribution to
exceed the third quarter.

Despite the disappointing third quarter sales trend, analysts very positive
long term view of Kodak is unchanged.  Analysts continue to believe a
rationalization of the company's high cost structure, an increased emphasis on
generating excess cash and a continuing effort to divest low return businesses
will generate significant earnings gains for Kodak over the next several years.