Shares of Eastman Kodak (KODK) plummeted 5.26% in Tuesday's intraday trading session, following the release of its mixed fourth-quarter 2024 financial results. The iconic imaging company faced headwinds in its core business, leading to a significant selloff despite some positive developments.

Eastman Kodak reported a 3% revenue decline in Q4 2024 compared to the same period in 2023, reflecting ongoing challenges in its core business. The company's full-year revenue for 2024 decreased by 7% compared to the previous year, partly due to strategic decisions to shed non-core businesses. Despite these setbacks, Kodak managed to improve its gross profit margin to 19% in Q4, up from 17% in the same quarter of 2023.

However, investors seemed more focused on the negative aspects of the report. Operational EBITDA for 2024 declined by 42% compared to 2023, impacted by lower volumes, higher aluminum costs, and inventory reserve adjustments. The company's cash balance also decreased by $54 million to $201 million by the end of 2024, driven by capital expenditures and lower profitability from operations. These factors, combined with the overall revenue decline, appear to have shaken investor confidence, leading to the sharp stock price drop.

Despite the challenges, Eastman Kodak's management highlighted some positive developments, including continued growth in its Advanced Materials and Chemicals (AMC) business and successful investments in its film plant capacity. The company also achieved a favorable outcome in a tariff petition process, which is expected to level the playing field for its commercial print division in the US market. However, these bright spots were not enough to offset concerns about the company's overall financial performance and future prospects, resulting in the significant stock price decline.