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In light of its stellar performance and the resilience displayed in the face of challenges, Philips looks to uphold its commitment to creating enduring value and delivering sustainable impact in the long term.
Philips, a prominent Dutch health technology company, has exceeded market expectations in its 2023 third-quarter performance, leading to an upward revision of its full-year outlook.
The company’s core profit more than doubled, reaching an impressive 457 million euros ($483.3 million), while its comparable sales observed a significant 11% surge, totaling 4.5 billion euros.
Philips Raises FY Outlook for 2023
In an official press release on October 23, Philips attributed the solid performance to increased demand for medical scanners, patient monitoring equipment, and personal health services.
The company has adjusted its financial projections for the full year in response to its improved performance and solid order book despite acknowledging the uncertainties stemming from the volatile geopolitical environment.
“Based on Philips’ improved performance year-to-date, the strong order book, and the ongoing actions, the company is further raising its outlook for the full year 2023, although recognizing uncertainties remain in an increasingly volatile geopolitical environment,” it said.
Philips is now anticipating a growth of 6-7% in comparable sales and an adjusted EBITA profit margin of 10-11% for the year 2023. The Dutch technology company aims to achieve free cash flow at the upper end of the targeted range, between EUR 0.7-0.9 billion.
The revised FY guidance reflects an upward revision from its previous forecast of mid-single-digit sales growth and a high single-digit profit margin.
Philips to Diversify Chip Suppliers
While the demand for its medical products fueled sales, new orders experienced a decline of 9% compared to the previous year, primarily due to subdued demand from China post the pre-pandemic surge, compounded by persistent supply chain challenges.
To counter these challenges, the company’s CEO Roy Jakobs revealed a strategic shift towards local production in China and the diversification of chip suppliers, aiming to mitigate the impact of escalating trade tensions.
The company’s robust third-quarter performance, which exceeded the forecasts of analysts polled by the company, has been instrumental in fortifying its position and instilling confidence in its ability to navigate the dynamic market landscape.
With a strengthened order book and a focused approach toward improving operational efficiency, the company remains poised for sustained growth despite persistent uncertainties in the global geopolitical arena.
“We have witnessed a remarkable improvement in our operational performance, driven by our unwavering commitment to enhancing patient safety, reinforcing the reliability of our supply chain, and establishing a streamlined operational model,” said Jakobs.
He further noted that the company’s sustained emphasis on innovations in predictive data analytics and artificial intelligence across its diverse portfolio has yielded a positive impact, fostering an environment conducive to enhancing the quality and efficiency of care delivery.
In light of its stellar performance and the resilience displayed in the face of challenges, Philips looks to uphold its commitment to creating enduring value and delivering sustainable impact in the long term.
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Shares of DraftKings Inc. rallied after hours on Thursday after the online sports-betting platform reported a surprise second-quarter profit and raised its full-year sales forecast, amid a nationwide expansion driven by U.S. state legalization.
DraftKings
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bumped its full-year sales outlook higher, to $3.46 billion to $3.54 billion, from a range of $3.135 billion to $3.235 billion. The new forecast was above FactSet estimates for $3.28 billion.
“We are acquiring new customers efficiently while simultaneously retaining and monetizing our existing players through rapid product innovation, less promotions, and higher hold from better bet mix,” DraftKings Chief Financial Officer Jason Park said in a statement. “Our unit economics are outstanding with older states generating more than enough cash to fund investment in new states.”
Executives noted that Kentucky, North Carolina, Vermont and Puerto Rico have authorized mobile sports betting. The company said it expected to launch its sportsbook in Kentucky on Sept. 28.
For the second quarter, revenue jumped to $874.9 million, compared with $466.2 million in the prior-year quarter. Adjusted for amortization, stock-based compensation and other items, DraftKings reported a 14-cent per-share profit.
Analysts polled by FactSet expected DraftKings to report an adjusted per-share loss of 25 cents, on revenue of $765 million.
On a GAAP basis, the company reported a net loss of $77.3 million, or 17 cents a share, compared with $217.1 million, or 50 cents a share, in the same quarter last year.
Shares jumped 12.4% after hours on Thursday.
The stock has torn 170% higher this year. And while DraftKings benefits from increased sports-betting deregulation, it has also had to deal with increased competition —from Fanatics, which outbid DraftKings for PointsBet U.S., and online betting sites like FanDuel and Barstool Sportsbook.
“We are not observing a significant change to competitive trends, but peg Barstool and Bet365 as the two likely operators increasing marketing the most relative to last year into football,” Oppenheimer analysts said in a research note.