Yahoo Finance Live anchors Julie Hyman and Brad Smith break down the rise in stock for Philips following first-quarter earnings.
JULIE HYMAN: Let's get to another mover here. Phillips moving to the upside after a beat in its latest quarter. The company also noting it's setting aside roughly $631 million related to lawsuits over its recall of respiratory devices. Specifically, that's a sleep apnea machine that has been causing a lot of legal woes for the company. And according to its customers, it's caused them woes as well.
So that aside, because the company beat, if you leave aside the funds that it set aside for this settlement, you look at the big beat there on the bottom line in particular. And the company CEO saying that it's going to be a strong year here and that it's going to deliver low single digit comps this year and high single digit adjusted operating profit margins. So all of that helping the shares.
BRAD SMITH: Yeah. For the overall kind of business segment performance that we've been talking about here-- and there you're taking a look at the group and business segment performance-- they're up 6%. Some of the other divisions, there was an increase, a comparable sales increase by 15% in the diagnosis and treatment business.
And then one of the other businesses worth calling out that saw an increase as well, connected care business, that saw sales increase of about 3% during the quarter. You think about what they do in hospital patient monitoring and then the sleep and respiratory care, as you mentioned a moment ago. But the personal health business, that actually did move lower. That was down by about 6% during the quarter.
But PHG shares, we saw this coming into the start of today's trading activity, it was up by about 11% pre-market, right now up by 15% as trading has commenced here in the US. And we're taking a look at those ADRs trading here.