PHG - Philips reports Q3 mixed earnings; issues Q4 soft guidance

• Philips press release ( NYSE: PHG ): Q3 Non-GAAP EPS of €0.25 beats by €0.16 .
• Revenue of €4.3B (+3.4% Y/Y) misses by €60M , with a 5% comparable sales decline, in line with the update provided on October 12, 2022.
• Comparable order intake decreased 6% on the back of 47% growth in Q3 2021.
• Adjusted EBITA of €209M, or 4.8% of sales, compared to €512M, or 12.3% of sales, in Q3 2021.
• Operating cash flow was an outflow of €180M, compared to an inflow of €256M in Q3 2021.
• The book-to-bill ratio was 1.18, and the equipment order book grew further in the quarter.
• Looking ahead, the company sees prolonged operational and supply challenges, a worsening macro-economic environment and continued uncertainty related to COVID-19 measures in China, which will be partly offset by Philips’ productivity and pricing actions.
• Consequently, Philips now expects a mid-single-digit comparable sales decline for the fourth quarter of 2022, with a high-single-to double-digit Adjusted EBITA margin range.

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