Carestream Health Inc.

The pandemic affected the company's two segments in opposite directions, with medical digital sales benefitting due to increased demand for digital radiography (DR) mobile equipment as patients avoided health care service providers when possible. In 2020 this situation led to medical digital growing by 12%, while the films segment contracted by about 18%. Through the first half of 2021, the company is seeing a reversal of those dynamics, with a return of films volumes more than offsetting declines in medical digital, due to patients returning to health care service providers for elective procedures. Beyond 2021 we continue to expect modest revenue contraction due to the secular headwinds facing the films business. Partially offsetting these risks are the company's modest product

...We expect low-single-digit revenue growth in 2021, benefitting from a rebound in demand in the film segment, followed by modest revenue declines in subsequent years as film faces longer-term headwinds. We expect that the company will generate positive revenue growth in 2021 due to a rebound affect after the worst of the COVID-19 pandemic affected results in 2020. Although pandemic risks remain, particularly with the recent spread of the delta variant in the U.S., we do not expect broad government-mandated shutdowns this year. In the first half, CareStream grew by about 3%, and we expect a low-single-digit rate for the full year. The pandemic affected the company's two segments in opposite directions, with medical digital sales benefitting due to increased demand for digital radiography (DR) mobile equipment as patients avoided health care service providers when possible. In 2020 this situation led to medical digital growing by 12%, while the films segment contracted by about 18%. Through...

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