Philips Q3 Earnings Beat: Will Weak Outlook Drag the Stock Down?

Zacks10-29

Koninklijke Philips N.V. PHG reported third-quarter 2024 earnings of €0.19 per share, witnessing a significant rise from the year-ago quarter’s reported figure of €0.09 per share.Find the latest EPS ...

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PHG reported third-quarter 2024 earnings of €0.19 per share, witnessing a significant rise from the year-ago quarter’s reported figure of €0.09 per share.Find the latest EPS ...</p>\n\n<a href=\"https://finance.yahoo.com/news/philips-q3-earnings-beat-weak-145000876.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Philips Q3 Earnings Beat: Will Weak Outlook Drag the Stock Down?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nPhilips Q3 Earnings Beat: Will Weak Outlook Drag the Stock Down?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-10-29 22:50 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/philips-q3-earnings-beat-weak-145000876.html><strong>Zacks</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Koninklijke Philips N.V. PHG reported third-quarter 2024 earnings of €0.19 per share, witnessing a significant rise from the year-ago quarter’s reported figure of €0.09 per share.Find the latest EPS ...</p>\n\n<a href=\"https://finance.yahoo.com/news/philips-q3-earnings-beat-weak-145000876.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"PHG","symbol_name":"飞利浦","start_time":0,"source_url":"https://finance.yahoo.com/news/philips-q3-earnings-beat-weak-145000876.html","article_id":"2479233438","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/ODR4OFQ6es2DXtmcU.DLWA--~B/aD0zNzI7dz02MjA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/d769244826e4f3d020ba08280de24d8a"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2479233438","pubTimestamp":1730213400,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Koninklijke Philips N.V. PHG reported third-quarter 2024 earnings of 0.19 per share, witnessing a significant rise from the year-ago quarter’s reported figure of 0.09 per share.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.The company’s sales decreased 2.1% on a year-over-year basis to 4.4 billion.Comparable sales remained steady, following double-digit growth in the third quarter of 2024. A decline in comparable sales in China was balanced by growth in other regions and an increase in royalty income.Koninklijke Philips N.V. Price, Consensus and EPS Surprise. Koninklijke Philips N.V. price-consensus-eps-surprise-chart | Koninklijke Philips N.V. Quote. Further, Philips’ comparable order intake declined 2% year over year in the reported quarter, primarily due to a decline in China.Sales declined 3% on a comparable basis in growth geographies. Sales in mature geographies were up 1% year over year on a comparable basis.","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"PHG":"飞利浦","SHOP":"Shopify Inc","TWLO":"Twilio Inc"},"translate_title":"飞利浦第三季度盈利超出预期：疲软的前景会拖累股价下跌吗？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"PHG":0.9,"SHOP":0.9,"TWLO":0.9},"content_text":"Koninklijke Philips N.V. PHG reported third-quarter 2024 earnings of €0.19 per share, witnessing a significant rise from the year-ago quarter’s reported figure of €0.09 per share.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.The company’s sales decreased 2.1% on a year-over-year basis to €4.4 billion.Comparable sales remained steady, following double-digit growth in the third quarter of 2024. A decline in comparable sales in China was balanced by growth in other regions and an increase in royalty income.\n\nKoninklijke Philips N.V. Price, Consensus and EPS Surprise\n  \nKoninklijke Philips N.V. price-consensus-eps-surprise-chart | Koninklijke Philips N.V. Quote\n\nFurther, Philips’ comparable order intake declined 2% year over year in the reported quarter, primarily due to a decline in China. Sales declined 3% on a comparable basis in growth geographies. Sales in mature geographies were up 1% year over year on a comparable basis.\nPHG’s Segmental Update\nDiagnosis & Treatment revenues declined 2.4% from the year-ago quarter to €2.15 billion. Comparable sales declined 1% year over year, primarily due to weakening performance in China. Growth in Image Guided Therapy was offset by a decrease in precision diagnosis.Although overall comparable sales decreased slightly, there was solid growth outside of China, particularly in image-guided therapy and precision diagnosis.Connected Care revenues decreased 1.7% year over year to €1.21 billion. Comparable sales remained flat, as growth in Enterprise Informatics and Sleep & Respiratory Care was offset by a slight decline in Monitoring following high-teens growth in the third quarter of 2024.Personal Health revenues fell 7% year over year to €835 million. Comparable sales declined 5% year over year, driven by a double-digit decline in China that offset growth in other regions. Other segment sales amounted to €181 million, up 29.3% on a year-over-year basis. Philips continued to advance its portfolio by launching new products, such as the AI-powered connected baby monitor, and securing FDA approvals for new medical devices. These product launches enhance PHG’s market position and drive demand in other regions.\nPHG’s Operating Details\nGross margin expanded 260 basis points (bps) on a year-over-year basis to 45.8% in the reported quarter.General & administrative expenses, as a percentage of sales, were 3.4%, which remained flat on a year-over-year basis. Moreover, selling expenses contracted 40 bps to 24.6%. Research & development expenses dipped 100 bps to 9.9%.Restructuring, acquisition-related and other items amounted to a net gain of €113 million compared with €162 million a year ago.Operating model productivity, procurement and other productivity programs delivered savings of €54 million, €58 million and €76 million, respectively. This resulted in total savings of €188 million.Phillips’ adjusted EBITA — the company’s preferred measure of operational performance — rose 13.2% year over year to €516 million. EBITA margin expanded 160 bps on a year-over-year basis to 11.8% in the reported quarter.Diagnosis & Treatment’s adjusted EBITA margin contracted 10 bps on a year-over-year basis to 12.6%.Connected Care’s adjusted EBITA margin was 7.3% in the reported quarter, which expanded 370 bps on a year-over-year basis.Personal Health’s adjusted EBITA margin contracted 220 bps on a year-over-year basis to 16.5%.\nPHG’s Balance Sheet\nAs of Sept. 30, 2024, Philips’ cash and cash equivalents were €1.5 billion compared with €1.8 billion as of June 30, 2024. Total debt was €8.032 billion compared with €8.265 billion as of June 30, 2024.Operating cash inflow was €192 million against the year-ago quarter’s operating cash flow of €489 million.In the quarter under review, free cash flow was €22 million compared with the year-ago quarter’s €333 million.\nPHG Lowers 2024 Guidance\nPhilips stock has rallied 14.3% year to date compared with the Zacks Medical sector’s growth of 3.6%. The outperformance can be attributed to PHG’s focus on product innovation and growth in other markets.However, a significant decline in demand from China has led to lowered guidance for 2024. These factors may also put downward pressure on PHG’s shares.Philips expects to deliver 0.5-1.5% of comparable sales growth.Further, adjusted EBITA margin is expected to be 11.5%.Philips expects a free cash flow of €900 million.Previously, Philips expected to deliver 3-5% of comparable sales growth.Further, adjusted EBITA margin is expected to be in the band of 11-11.5%.Philips expects free cash flow between €900 million and €1.1 billion.\nPHG’s Zacks Rank & Other Stocks to Consider\nPhilips currently has a Zacks Rank #2 (Buy).Shopify SHOP, Garmin GRMN and Twilio TWLO are some top-ranked stocks that investors can consider in the broader sector. While SHOP currently sports a Zacks Rank#1 (Strong Buy) whereas Garmin and Twilio carry Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.Shopify shares have gained 2.5% year to date. SHOP is set to report its third-quarter 2024 results on Nov. 12.Garmin shares have gained 29.4% year to date. GRMN is set to report its third-quarter 2024 results on Oct. 30.Twilio shares have lost 6.9% year to date. TWLO is set to report its third-quarter 2024 results on Oct. 30.\nWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report\nGarmin Ltd. (GRMN) : Free Stock Analysis Report\nKoninklijke Philips N.V. (PHG) : Free Stock Analysis Report\nShopify Inc. (SHOP) : Free Stock Analysis Report\nTwilio Inc. (TWLO) : Free Stock Analysis Report\nTo read this article on Zacks.com click here.\nZacks Investment Research","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.2","shortVersion":"4.29.2","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2479233438"}