Philips slides on Q3 misses

Royal Philips (NYSE:PHG) shares took hits in New York and London today after it reported lower-than-forecast sales and earnings figures.

The Dutch healthcare conglomerate posted profits of €292 million, or €0.33 per share, on sales of €4.31 billion for the three months ended Sept. 30, for a -31.0% bottom-line slide on sales growth of 3.8% compared with Q3 2017.

Adjusted to exclude one-time items, EBITA were €568 million, -2.7% below the €584 million consensus estimate on Wall Street, where analysts were looking for sales of €4.33 billion.

“While I am pleased with the continued strong 11% order intake growth in the quarter, operational improvements were partly offset by increased foreign exchange headwinds. This resulted in a 40 basis points improvement in adjusted EBITA margin on the back of 4% comparable sales growth,” CEO Frans van Houten said in prepared remarks. “Looking ahead, while observing continuing headwinds, for which we are taking appropriate measures, we reiterate our targets for the 2017–2020 period of 4% to 6% comparable sales growth and an average annual 100 basis points improvement in adjusted EBITA margin.”

The news sent PHIA shares down -9.0% to €31.61 apiece today in Amsterdam and took PHG shares down -9.6% to $36.10 each in late-morning trading in New York.

($1 = €0.871992)

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