Philips $PHG+1.1%, the Dutch electronics and electrical manufacturer, reports 3Q results:
Like-for-like 4% nominal sales growth beat expectations with comparable sales up 11% on estimates of 7.26%. Adjusted EBITDA margin was 10.2% against the average analyst estimate of 9.41%. The Diagnostics and Therapeutics division had the largest increase in comparable sales, which was 13.8% against expectations of 8.81%.
Profit from continuing operations was €97m compared to a loss of €1.33bn for the same period last year. Adjusted earnings per share from continuing operations rose to EUR 0.33, exceeding expectations of EUR 0.27.
3Q free cash flow was EUR333mn and operating cash flow was EUR489mn.
Order intake on a comparable basis was down 9% y/y, last quarter the company reported an 8% decline. The order book covers approximately 40% of the group's total revenue. It was the decline in orders received that analysts reacted negatively to in the last quarterly report.
Philips has upgraded its full-year adjusted EBITDA margin guidance from the high end of the higher single-digit percentages to a specific range of 10-11%. Comparable sales are then expected to grow in the 6.7% range for fiscal 2023, according to the company, while analysts were expecting 5.92%.