Royal Phillips
Note: This is a daily stock update and the information stands true as of 06/05/25, 09:00 CET.
Company Update:
Expert Opinion:
The impact of tariffs shouldn’t be a real surprise and while our expert believes consensus will downgrade their estimates on the revised guidance, it was at least partially anticipated by the street. While he still likes Philips on the long run, he believes short term momentum will remain adverse. The current situation in China is still a drag for Philips and he would wait for signs of improvement there before re-entering the name. X read is negative for Siemens Healthineers.
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Company Update:
Q1 results were significantly better than expected with sales beating consensus by 2% and EBITDA beating by 15%.
The order intake is also better than expected, rising 2% as growth in the US is more than offsetting the slump in China.
However, the company is warning that the tariffs will have an impact on the business and Philips is cutting down its sales guidance from 1-3% organic growth to flat and FY EBITDA margin target from c 12% to 10.8%-11.3%.
We are likely to adjust down our estimates in the c 200m-300m range at the EBITDA level.
The impact of tariffs shouldn’t be a real surprise and while our expert believes consensus will downgrade their estimates on the revised guidance, it was at least partially anticipated by the street. While he still likes Philips on the long run, he believes short term momentum will remain adverse. The current situation in China is still a drag for Philips and he would wait for signs of improvement there before re-entering the name. X read is negative for Siemens Healthineers.
For daily updates, subscribe to our newsletter and for detailed information, reach out to us at sales@alphavalue.eu
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Alphavalue Morning Market Tip
Beat in Q1 but Wegovy sales are below expectations. FY25 sales guidance downgraded.
