Philips stock opened 10% down on Monday: explained here

0

Philips stock opened 10% down on Monday: explained here

Ad disclosure

Invezz is an independent platform with the goal of helping users achieve financial freedom. In order to fund our work, we partner with advertisers who compensate us for users that Invezz refers to their services. While our reviews and assessments of each product on the site are independent and unbiased, brands may pay to appear higher up our table rankings or place ads in specific areas of the site. The order in which products and services appear on Invezz does not represent an endorsement from us, and please be aware that there may be other platforms available to you than the products and services that appear on our website. Read more about how we make money >

By:

Wajeeh Khan

on
Apr 25, 2022

Philips NV reported its financial results for the first quarter on Monday.

CEO Frans van Houten discussed results on CNBC’s “Squawk Box Europe”.

Philips stock opened more than 10% down on results this morning.

Koninklijke Philips NV stock (AMS: PHIA) is down more than 10% on Monday after the health-technology company reported a net loss for its fiscal first quarter.

Notable figures in Philips Q1 earnings report

Lost €151 million ($162 million) versus the year-ago figure of €39 million profit.Sales were up 2.5% to €3.92 billion, ahead of Wall Street estimates.Comparable sales sunk 4.0%, much less than 7.8% Philips had forecast.Adjusted EBITA of €243 million was down 33% YoY, but better than expected.

According to the Dutch multinational, it’s resorting to price increase to offset inflationary pressures.


Are you looking for fast-news, hot-tips and market analysis?

Sign-up for the Invezz newsletter, today.

Highlights from CEO’s interview on CNBC

Philips cited strong demand as it reiterated its guidance for 3.0% to 5.0% growth in comparable sales this year. On CNBC’s “Squawk Box Europe”, CEO Frans van Houten said:

We see continued demand from hospitals and consumers. We saw 5.0% order growth in Q1 that brings our order book higher 30% YoY. Consumer demand was also strong. Oral care was up double-digit and personal health business grew 8.0%.

The chief executive, however, agreed that supply chain constraints continue to be a headwind. The COVID situation in China poses another risk for the future, he added. Philips shares have cut in half in the trailing twelve months – a sharp decline that the CEO Houten attributes to the company’s sleep and respiratory care business. He noted:

95% of Philips is performing well. But analysts and shareholders are focused on the big recall in our sleep and respiratory area that reflects about 5.0% of the company. It’ll take us the whole year to complete this recall. That’s what’s putting pressure on the share price.

Invest in crypto, stocks, ETFs & more in minutes with our preferred broker,
eToro

10/10

68% of retail CFD accounts lose money

Visit site

Health & pharmaceuticals


Industries


Manufacturing


North America


Stocks & Shares


Technology


World

Generated by Feedzy