The earnings call highlighted strong operational improvements and innovation-led product advancements, especially in North America, but these are overshadowed by significant challenges in China that have affected sales and led to a reduced sales outlook for the year.

Company Guidance

During the Royal Philips Third Quarter 2024 Results Conference Call, the company provided updated guidance, reflecting the challenging macroeconomic environment, particularly in China. Philips reported that group comparable sales were flat, with orders decreasing by 2%, largely due to declining demand from hospitals and consumers in China. As a result, Philips lowered its full-year sales outlook to a range of 0.5% to 1.5% comparable sales growth, with expected sales growth outside of China within the guided range of 3% to 5%. Despite these challenges, Philips anticipates an adjusted EBITA margin of around 11.5%, at the upper end of the current outlook range, driven by improved gross margins and higher royalty income. The company also projects free cash flow to be around EUR 0.9 billion. Philips remains committed to executing its 3-year plan, focusing on innovation, financial discipline, and operational improvements to drive value and capture growth opportunities globally, while closely monitoring the situation in China.

Adjusted EBITA Margin Improvement

The adjusted EBITA margin improved by 160 basis points to 11.8% due to improved operational performance, pricing, and productivity measures.

Strong Performance in North America

The Diagnosis & Treatment orders remained solid outside of China, driven particularly by North America, which saw a faster order growth compared to other regions.

Innovation and Product Approvals

Received FDA approval for several innovations, including the new LumiGuide Navigation Wire and AI algorithms for cardiovascular ultrasound, enhancing Philips' product offerings.

Productivity Savings

Productivity initiatives delivered savings of EUR 188 million in the quarter, with a total of over EUR 1.5 billion since January 2023.

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Koninklijke Philips (DE:PHIA) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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DE:PHIA Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Jul 23, 2018	2018 (Q2)	- / 0.22	0.186	18.04% (+0.03)	―	―
Oct 22, 2018	2018 (Q3)	- / 0.35	0.309	11.80% (+0.04)	―	―
Jan 29, 2019	2018 (Q4)	- / 0.82	0.583	39.80% (+0.23)	―	―
Apr 29, 2019	2019 (Q1)	- / 0.20	0.115	73.33% (+0.08)	―	―
Jul 22, 2019	2019 (Q2)	- / 0.43	0.211	105.91% (+0.22)	―	―
Oct 28, 2019	2019 (Q3)	- / 0.46	0.33	39.24% (+0.13)	―	―
Jan 28, 2020	2019 (Q4)	- / 0.60	0.781	-22.60% (-0.18)	―	―
Apr 20, 2020	2020 (Q1)	- / 0.18	0.191	-7.54% (-0.01)	―	―
Jul 20, 2020	2020 (Q2)	- / 0.36	0.42	-15.30% (-0.06)	―	―
Oct 19, 2020	2020 (Q3)	- / 0.63	0.444	41.25% (+0.18)	―	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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DE:PHIA Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Oct 28, 2024	€29.20	€24.00	-17.81%
Jul 29, 2024	€23.60	€23.80	+0.85%
Apr 29, 2024	€18.86	€24.17	+28.21%
Jan 29, 2024	€20.11	€18.76	-6.73%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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