Royal Philips : ADRs Down 8% After 3Q Forecast
By Michael Dabaie
Royal Philips NV (PHG) ADRs were down 8% premarket, to $41.94.
The Netherlands-based health technology company said comparable order intake growth in the third quarter is expected to be flat on the back of 11% growth in the third quarter of 2018.
Group adjusted EBITA for the quarter is expected to be around 583 million euros ($642.8 million), or 12.4% of sales, compared to 13.2% a year earlier. The continued Adjusted EBITA margin improvement of the Diagnosis & Treatment and Personal Health businesses was more than offset by a 4.5 percentage point decline in the Adjusted EBITA margin of the Connected Care businesses, to 11.3% of sales, the company said. Philips cited increasing headwinds from tariffs.
Group sales for the quarter are expected to be about EUR4.7 billion, reflecting 6% comparable sales growth with all businesses contributing.
Write to Michael Dabaie at email@example.com