PHG - Why Shares in Philips Fell Sharply This Week
Shares in medical technology company Koninklijke Philips (NYSE: PHG) fell by 8.5% in the week to Friday morning. The move came after yet another disappointing earnings report from the company. In short, it's been a tough year for Philips. In addition to high-profile product recalls of some of its sleep apnea machines and ventilators, delays in elective procedures negatively impacted its sales growth . If that wasn't bad enough, supply chain challenges have been more significant than expected and have dented sales growth as well.
Philips is not alone in experiencing supply chain difficulties; for example, peer General Electric 's (NYSE: GE) healthcare segment has also seen its sales growth held back by similar obstacles, and management has reduced its full-year segment profit guidance from between $3.1 billion and $3.3 billion to about $3 billion.
Investors in the healthcare company hope that easing supply chain difficulties and a settlement agreement over product recalls will draw a line in the sand and enable Philips to generate sales and margin expansion in 2023.
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Why Shares in Philips Fell Sharply This Week