Koninklijke Philips N.V. PHG recently announced that it has entered into a seven-year agreement with Northwell Health, one of the largest healthcare providers in the state of New York.
Northwell Health, through its 21 hospitals and 83,000 employees, serves 12 million people and treats more than two million patients a year.
The addition of Philips’ systems to Northwell Health’s existing system aims at improving patient monitoring, care and outcomes, simultaneously driving interoperability and data innovation.
Northwell is the latest in the series of hospitals and medical centers that Philips has partnered with in recent times. Late March, Connally Memorial Medical Center announced that it is implementing the new Philips Incisive CT that will help it to serve rural Texas communities.
Koninklijke Philips N.V. Price and Consensus
Koninklijke Philips N.V. price-consensus-chart | Koninklijke Philips N.V. Quote
Moreover, Gibraltar Health signed a 16-year agreement with Philips that includes the building of a brand-new interventional cardiac suite (cath lab).
The company also entered into a long-term strategic partnership with TriHealth, a leading Cincinnati-based integrated healthcare delivery system. TriHealth is set to adopt Philips’ integrated portfolio of cardiology solutions.
Expanding Portfolio Aids Philips’ 2023 Prospects
Philips shares have gained 22.3% year to date, thanks to an expanding portfolio, which is expected to drive Philips’ top-line growth in 2023. The broader Zacks Medical sector has declined 3.9% over the same timeframe.
The company expects to deliver low-single-digit comparable sales growth and high-single-digit adjusted EBITA margin in 2023, which is driven by component and pricing actions across its business.
Philips recently released its latest portfolio of smart diagnostic systems and transformative workflow solutions powered by AI.
It recently unveiled Philips Virtual Care Management, which is designed to connect health system providers, payers and employer groups, as well as patients from anywhere virtually.
Philips Virtual Care Management solution aims at reducing the burden on hospital staff by minimizing emergency department visits, lowering the cost of care and managing chronic diseases more efficiently.
For second-quarter fiscal 2023, the Zacks Consensus Estimate for revenues is pegged at $4.76 billion, indicating growth of 8.5% from the year-ago quarter’s reported quarter. Moreover, the consensus mark for earnings is projected at $3.77 per share, indicating growth of 12.5% from the year-ago quarter’s reported figure.
Zacks Rank & Stocks to Consider
Currently, Philips carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader sector are Masimo MASI, Adaptive Biotechnologies ADPT, and Addus HomeCare ADUS. While Masimo sports a Zacks Rank #1 (Strong Buy), both Adaptive and Addus carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Masimo, Adaptive Biotechnologies and Addus shares have gained 23.1%, 14.3% and 4.9% year to date, respectively.
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