PHG Earnings Prediction
The chart below shows how PHG performed 10 days before and after its earnings report, based on data from the past quarters. Typically, PHG sees a +0.05% change in stock price 10 days leading up to the earnings, and a -0.58% change 10 days following the report. On the earnings day itself, the stock moves by +2.06%. This data can give you a slight idea of what to expect for the next quarter's release.
PHG Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
5.38B
-1.23%
11.86%
Gross Margin
38.92%
9.51%
-15.08%
Operating Margin
9.60%
-57.97%
-6.43%
Net Margin
-6.60%
-980.00%
-258.65%
EPS
-0.38
-860.00%
-280.95%
No Data Available
PHG Earnings Analysis
Koninklijke Philips NV Corporation (PHG.N) Earnings Conference Call
Positive
Profitability and Cash Flow Growth: Strong profitability improvement and cash flow in Q4 and for the full year 2024.
Sales Growth Challenges: Comparable order and sales grew low single digits in the quarter and the year, despite challenges in China.
Respironics Recall Resolution Milestones: Significant milestones reached in resolving the Respironics recall, enhancing operational clarity.
Proposed Dividend Announcement: Strong balance sheet allowing for a proposed dividend of EUR0.85 per share, with options for cash or shares.
EBITA Margin Improvement: Adjusted EBITA margin improved by 90 basis points to 11.5% for the full year, indicating operational efficiency.
Free Cash Flow Performance: Free cash flow of EUR1.3 billion in Q4 and EUR0.9 billion for the full year, aligning with guidance.
Adjusted EPS Growth: Positive adjusted diluted EPS from continued operations increased by 35% in Q4 and 17% for the full year.
US Order Growth Surge: Strong growth in the US and other growth regions, with double-digit order growth in the US.
AI Innovations Impact on Sales: AI-driven innovations contributing to over 50% of sales from new and upgraded products launched in the last three years.
Productivity Savings Target Increase: Increased productivity savings targets from EUR2 billion to EUR2.5 billion for 2023 to 2025, indicating strong cost management efforts.
Negative
Earnings Miss Reported: Philips missed earnings expectations with reported EPS of $0.54, below the expected $0.55.
Decline in Consumer Demand: There were double-digit declines in consumer and health systems demand in China, which negatively impacted overall sales growth.
Regional Sales Challenges: Despite a 1% growth in comparable sales, the growth was largely offset by a significant decline in China, indicating regional weaknesses.
Restructuring Charges Impact Income: The company faced high restructuring and other charges related to the Respironics recall, which affected net income, leading to a decrease of EUR371 million in the quarter.
Increased Tax Expenses Impact: Tax expenses increased by EUR581 million in the quarter, primarily due to higher de-recognition of deferred tax assets and higher taxable income, which negatively impacted net income.
Sales Decline Forecast: The forecast for 2025 includes expectations of mid- to high single-digit sales decline in China, particularly in the first half of the year, indicating ongoing challenges in that market.
Lower EBITA Margin Outlook: The company anticipates lower adjusted EBITA margin in the first quarter of 2025 due to the expected double-digit sales decline in China and high comparison base effects.
Restructuring Cost Impact: Restructuring costs are expected to be 100 basis points of 2025, indicating ongoing financial strain as the company works to simplify its operations.
PHG FAQs
How does PHG typically perform around its earnings report dates?
Is Koninklijke Philips NV (PHG) Q4 2024 Earnings Call Summary positive or negative?
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PHG Earning Call Sentiment
Koninklijke Philips N.V. (NYSE:PHG) Q4 2024 Earnings Call Transcript
PHG.N
2.08%Positive
The earnings call summary presents a mixed picture: financial performance had both positive elements (e.g., adjusted EBITA margin improvement) and negatives (e.g., EPS miss, net income decrease). The Q&A highlighted uncertainties, especially concerning China and DOJ timing. Positive factors include productivity savings and a balanced shareholder return plan. However, the lowered sales outlook and lack of strong guidance create a neutral sentiment. The absence of market cap data prevents a precise impact estimate, but the overall sentiment suggests a neutral stock price movement over the next two weeks.
