Dutch health technology company Philips modestly increased its full-year targets after beating second quarter earnings expectations. However, the company expressed concerns over China's push for self-sufficiency in health technologies.
Philips reported adjusted EBITA of 453 million euros for the second quarter, above analysts estimates of 394 million euros.
For the full year, the company expects comparable sales growth in the mid-single digits, up from previous guidance of low-single-digit growth. Its adjusted EBITA margin guidance was also raised.
However, Philips shares fell 5% as order intake declined for a fourth straight quarter. The company warned of uncertain market conditions and said it had "a particular concern" over China's self-sufficiency drive in health technologies.
Philips has been grappling with the major recall of ventilators due to health concerns. The company has produced almost all replacement devices and repair kits required for the recall.
In summary, Philips modestly upgraded its earnings outlook after beating second quarter estimates. However, shares fell on concerns over order trends and China's health technology ambitions. The company also continues to deal with the impact of the ventilator recall.
