Philips stock sinks 16% on lower full-year guidance, China drags on earnings

Published On Oct 28, 2024, 2:05 PM

Philips stock fell over 16% after the company reduced its sales forecast for the year due to decreased demand in China. In Q3, revenues were $4.6 billion, below the expected $4.9 billion, but the firm reported stronger than expected earnings per share (EPS). The guidance for sales growth was cut from 3-5% to just 0.5-1.5%. However, Philips mentioned that markets outside China are still expected to meet their forecasts. The CEO expressed optimism about recovering demand in China in the near future, noting strong performance in North America, where innovative medical technologies are seeing increased demand.