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 t ...

Core Insights - The company reported third-quarter sales of EUR 4.4 billion, with flat comparable sales growth and a decrease in order intake by 2% primarily due to declining demand in China [1][4][8] - Adjusted EBITA margin improved by 160 basis points to 11.8%, driven by enhanced gross margins from innovations and productivity measures [1][4][9] - The full-year 2024 outlook has been revised, projecting comparable sales growth between 0.5% and 1.5%, with an adjusted EBITA margin around 11.5% and free cash flow expected at EUR 0.9 billion [1][8][9] Group and Segment Performance - Group comparable sales remained flat, contrasting with an 11% growth in Q3 2023, with solid growth in all regions except China [3][4] - Diagnosis & Treatment segment saw a 1% decrease in comparable sales, while Connected Care sales were flat, and Personal Health sales decreased by 5% due to significant declines in China [5][6] Profitability and Cash Flow - Operating income was reported at EUR 337 million, with operating cash flow of EUR 192 million and free cash flow of EUR 22 million [1][4] - Productivity initiatives yielded savings of EUR 188 million in Q3, contributing to a total of over EUR 1.5 billion in savings since 2023 [7] Market Outlook - The company anticipates continued challenges in the Chinese market, impacting overall demand and sales outlook [2][9] - Despite the difficulties in China, the company remains focused on executing its three-year plan to capture growth and improve margins [3][9] Innovation and Customer Engagement - The company has expanded its cardiovascular ultrasound platform and secured FDA approvals for new technologies aimed at enhancing patient care [11] - Partnerships with healthcare providers globally aim to improve access to care and clinical outcomes, particularly in emerging markets like Indonesia and China [11]

Core Viewpoint - Koninklijke Philips (PHG) is identified as a strong value stock with a Zacks Rank of 2 (Buy) and an A grade for Value, indicating it is potentially undervalued in the market [2]. Valuation Metrics - PHG has a Forward P/E ratio of 17.94, significantly lower than the industry average of 22.14, with a historical range between 12.29 and 18.69 over the past year [2]. - The PEG ratio for PHG stands at 0.93, compared to the industry average of 2.15, indicating a favorable valuation when considering expected earnings growth [2]. - PHG's P/B ratio is 2.34, which is attractive relative to the industry average of 5.32, with a historical range from 1.28 to 2.40 over the past year [3]. - The P/S ratio for PHG is 1.54, slightly below the industry average of 1.57, suggesting that the stock is reasonably priced based on revenue [3]. Investment Outlook - The combination of PHG's strong valuation metrics and positive earnings outlook positions it as an impressive value stock at the moment [3].

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Investors with an interest in Medical - Products stocks have likely encountered both Royal Philips (PHG) and ResMed (RMD) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look. We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our ...

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market in the short term [2] Zacks Style Scores Overview - Stocks are rated from A to F based on value, growth, and momentum characteristics, with A being the highest score [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score [3][4][5] Value Score - Focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - Evaluates stocks based on projected and historical earnings, sales, and cash flow to identify sustainable growth opportunities [4] Momentum Score - Assesses stocks based on price trends and earnings outlook, helping investors capitalize on upward or downward price movements [4] VGM Score - Combines the three Style Scores to provide a comprehensive rating, highlighting stocks with attractive value, growth potential, and positive momentum [5] Zacks Rank Integration - The Zacks Rank utilizes earnings estimate revisions to guide investors in building successful portfolios, with 1 (Strong Buy) stocks achieving an average annual return of +25.41% since 1988 [6][7] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal investment potential [8] Earnings Estimate Revisions - The direction of earnings estimate revisions is crucial; stocks with lower Zacks Ranks but high Style Scores may still face downward price pressure [9] Company Spotlight: Koninklijke Philips N.V. (PHG) - Koninklijke Philips N.V. is rated 2 (Buy) on the Zacks Rank, with a VGM Score of A and a Momentum Style Score of B, indicating strong performance [10] - For fiscal 2024, the Zacks Consensus Estimate for PHG has increased by $0.03 to $1.59 per share, with an average earnings surprise of 53.7% [11]

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October 7, 2024 Jakarta, Indonesia and Amsterdam, the Netherlands – Royal Philips (NYSE: PHG, AEX: PHIA), a global leader in health technology, and Siloam Hospitals Group, Indonesia's leading private healthcare provider, have signed a Memorandum of Understanding (MoU) to advance AI capabilities and development in the healthcare sector in Indonesia. The strategic collaboration, in partnership with the Universitas Pelita Harapan (UPH) Medical Sciences Group, will focus on capacity building, knowledge sharing, ...

October 3, 2024 Philips helps healthcare organizations worldwide assess and mitigate their environmental impact while enabling better care and better care outcomes for more patients at lower cost Amsterdam, the Netherlands – Royal Philips (NYSE: PHG, AEX: PHIA), a global leader in health technology, today announced significant greenhouse gas (GHG) emissions reduction results following collaboration with customers worldwide to assess and mitigate their carbon footprints, while also enhancing patient care and ...

Philips Sonicare is encouraging viewers to switch from their manual toothbrush and elevate their routine with a power toothbrush, like Philips Sonicare DiamondClean Smart, which removes up to 20X more plaque along the gumline [1] and delivers more brush strokes in two minutes than an entire month of manual brushing. This helps achieve an efficient, exceptional clean and confidence going into the big moments in daily life. McKinnon stars in a series of advertisements that make audiences confront their lacklu ...