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Philips (PHG) to Showcase New Innovations & Cardiac Solutions

Koninklijke Philips PHG recently announced that it will showcase latest innovations and cardiology solutions designed to deliver cardiac care for patients at the Transcatheter Cardiovascular Therapeutics (TCT) annual meeting.

Some of the latest innovations to be showcased by the company at TCT 2022 are Philips 3D Intracardiac Echocardiography Catheter and Philips live fluoroscopy-echo fusion imaging solution and Philips Laser System – Nexcimer.

Philips 3D Intracardiac is designed to offer 2D and 3D live-image guidance for a wide range of procedures in structural heart disease and electrophysiology. The Philips live fluoroscopy-echo fusion imaging solution provides live fusion imaging plus new anatomical modeling and transeptal guidance during minimally-invasive structural heart disease procedures.

Philips is building its imaging solutions to deliver better cardiac solutions to further benefit from its tried-and-tested strategic operational decision to build new products to attract more customers. PHG is consistently benefiting from strong demand for Image-Guided Therapy, Diagnostic Imaging, Ultrasound and Hospital Patient Monitoring system products as it is innovating an array of products in these verticals.

Koninklijke Philips N.V. Price and Consensus

Koninklijke Philips N.V. Price and Consensus
Koninklijke Philips N.V. Price and Consensus

Koninklijke Philips N.V. price-consensus-chart | Koninklijke Philips N.V. Quote

Philips Designing Products to Drive Top Line

Philips’ top-line growth in the second quarter of 2022 was negatively impacted by global supply shortages and lockdowns in China due to the resurgence of the COVID-19 pandemic in Shanghai and adjoined areas. Due to the lockdowns, production in various factories in China was halted, severely affecting the supply capabilities of Philips.

Additionally, adjusted EBITDA was hurt by lower sales volume as the rising inflation reduced demand for its products in high-margin businesses like patient monitoring, ultrasound and image-guided therapy systems, even though there is positive review in the market regarding Philips’ new solutions.

Philips also trimmed its guidance for the third quarter of 2022 as management expects these macroeconomic challenges — affecting the business operations — to persist. PHG expects 2022 comparable sales growth between 1% and 3% (down from previous guidance of 3% to 5%). Adjusted EBITA margin is expected to be 10%, driven by 6-9% comparable sales growth in the second half of 2022.

Due to the current macroeconomic scenario, prospects are sluggish in the healthcare market worldwide. This is evident from the depreciating share price movement of Philips and its peers operating in the broader medical sector, including Acer Therapeutics ACER, Abeona Therapeutics ABEO and Agenus AGEN.

Philips currently has a Zacks Rank # 4 (Sell). Shares of PHG have plunged 61.5% in the year-to-date period compared with the Zacks Medical-Products industry and the Medical sector’s decline of 48.2% and 23.9%, respectively. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

ACER’s shares have fallen 43.3% in the year-to-date period compared with the Zacks Medical - Drugs industry’s decline of 29.8%.

Abeona’ stock has tanked 86.8% in the year-to-date period compared with the Zacks Medical - Biomedical and Genetics industry’s decline of 25.7%.

Agenus’s shares have slumped 59.3% in the year-to-date period compared with the Zacks Medical - Biomedical and Genetics industry’s decline of 38.8%.

However, Philips is stepping up its pricing structure to benefit against competitors, and manufacturing products that have high market demand and creating supply chain resilience. Philips recently expanded its global network of partners in developing the Philips Spectral Angio CT suite. PHG has partnered with the Leiden University Medical Center in the Netherlands, which will help it realize its goal to build the world’s first spectral detector angio CT solution. Philips is also developing AI-based products, which will aid in providing diagnosis faster. The development of its AI-based solutions and expansion of cardiac solutions will boost Philips’ top-line growth in the long run.

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