2 weeks Ago By Vandana Singh
On Monday, Koninklijke Philips NV PHG reported third-quarter adjusted EPS of 0.32 euros (or $0.35), missing the consensus of 0.
35 euros . “In the quarter, demand from hospitals and consumers in China further deteriorated, while we continue to see solid growth in other regions. We have adjusted our full-year sales outlook to reflect the continued impact from China,” said Roy Jakobs, CEO of Royal Philips .
“Within a challenging macro environment, we remain focused on successfully executing our three-year plan to fully capture growth and margin expansion opportunities,” Jakobs added. Also Read: Philips Issues Software Fix For Some Ventilators To Fix Power Alarms Issues, Oxygen Display Errors . The Dutch conglomerate reported sales of 4.
38 billion euros ($4.74 billion), down 2% year over year and missing the consensus of 4.54 billion euros.
Group comparable sales were flat on the back of 11% growth in the quarter and a deterioration in demand in China. The company delivered growth in all other regions and from increased royalty income. China remains a fundamentally attractive growth market for Philips in the long term, with market conditions expected to remain uncertain.
Comparable order intake in the quarter declined 2% due to China, with solid order intake growth in Diagnosis & Treatment, particularly in the U.S. Year-to-date comparable order intake grew 1%, including China.
Diagnosis & Treatment comparable sales decreased 1%, on the back of 14% growth in the third quarter of 2023, with solid growth outside of China. Connected Care comparable sales were flat, with growth in Enterprise Informatics and Sleep & Respiratory Care offset by a low-single-digit decline in Monitoring on the back of high-teens growth the prior year. Personal Health comparable sales decreased 5% due to a double-digit decline in China, more than offsetting a robust performance elsewhere.
Guidance: The Dutch health technology expects full-year 2024 comparable sales growth of 0.5%-1.5% versus the prior guidance of 3%-5% .
Philips expects comparable sales growth outside of China to remain within the 3-5% range. The adjusted EBITA margin is expected to be around 11.5%, at the upper end of the range, and free cashflow around EUR 0.
9 billion, at the lower end of the range. Price Action: PHG stock is down 17.1% at $26.
25 during the premarket session at last check Monday. Photo by Mats Wiklund via Shutterstock Read Next: Leonardo DiCaprio Backs Harris, Says Trump ‘Continues To Deny The Facts’ On Climate . © 2024 Benzinga.
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