Philips: shares rise on quarterly earnings beat

(CercleFinance.com) - Dutch healthcare technology firm Philips beat estimates both in terms of sales and profit in the third quarter, sending its shares higher in early trading on Monday morning.


The company, which makes products ranging from ultrasound imaging systems to ventilators used to treat Covid-19 patients, said core earnings rose to 341 million euros, up almost 62% from 211 million euros a year ago.

Adjusted earnings before interest, taxes and amortization (EBITA) rose to 769 million euros, while analysts were expecting 630 million euros.

Comparable sales rose 10% to five billion euros, compared to consensus of 4.8 billion euros, with the company's EBITA margin improving by 0.3 point to 15.4% of sales.

Philips also provided new financial targets for 2021-2025, saying it aims to accelerate comparable sales growth to 5%-6%, with an adjusted EBITA margin that is up by 60-80 basis points on average annually.

Philips shares were up over 2% in early trading on Monday. They are now almost flat year-to-date.

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