Philips gains on strong Q2 results

Royal Philips (NYSE:PHG) shares are up today after the Dutch healthcare conglomerate said core second-quarter profits rose nearly 15% to $512.31 million (€439 million), just beating the consensus forecast. The Amsterdam-based company, which spun off its lighting division last year to focus on medical devices and healthcare product, said sales grew 4% to $5.01 billion (€4.29 billion) on “strong” order intake. Analysts were looking for adjusted earnings before interest, taxes, and amortization (EBITA) of $511.1 million (€438 million). “Philips’ performance in the second quarter of 2017 was solid, with 4% comparable sales growth in our HealthTech portfolio driven by Western Europe, North America and China, and a strong 8% increase in our order intake. We achieved a 90-basis-point increase in the Adjusted EBITA margin, driven by higher volumes, operational improvements and cost productivity,” CEO Frans van Houten said in prepared remarks. “Despite continued volatility in the markets in which we operate, our outlook for 2017 remains unchanged as we expect further operational improvements and comparable sales growth in the year to be back-end loaded, supported by a strong order book. We are on track to deliver 4% to 6% comparable sales growth and an improvement in adjusted EBITA margin of around 100 basis points per year.” Investors here and in Europe responded by sending share prices up today. In Amsterdam, PHIA shares jumped 3.0% t...
Source: Mass Device - Category: Medical Devices Authors: Tags: MassDevice Earnings Roundup Wall Street Beat royalphilips Source Type: news