Philips stock soars on rise in comparable sales

Koninklijke Philips (PHG) (Royal Philips) shares are surging in Monday's trading session following the company's report of a 2% year-over-year increase in comparable group sales. Additionally, strong demand in North America has successfully offset the pullback experienced in China.

Yahoo Finance health reporter Anjalee Khemlani analyzes Philips' earnings report, examining products driving the company's performance.

For more expert insight and the latest market action, click here to watch this full episode of Catalysts.

This post was written by Angel Smith

Video transcript

We're going to move on to another trending taker here.

Phillips shares moving to the upside this morning to the tune of 13% after seeing its second quarter comp sales climbing 2% from a year ago.

Demand North North America offsetting the pullback in China.

Yah, finances and clan has the breakdown for us.

And on this pull back in China, story is not one that is specific to this company.

But how big of a deal was it for this earnings?

Well, they definitely saw the pull back, and they and I actually did speak to CEO, uh, Roy Jacobs earlier.

And he did talk about how you know, the company has had a very long history in China.

This is not a new area.

This is not a new market for them, so they're not even worried about it.

They're like it is going to come back, and that's where they stand on that.

But Phillips is an interesting story because we know, of course, uh, the overhang has been from that, uh, cpap from the machines recall that they've had in the past and they've sort of gotten over the hump.

They're starting to build back credibility, starting to see a little bit of uptick in the market now.

And that's where you're seeing this recovery and seeing the stock up.

Even with the earnings, Miss, they did have a slight revenue beat.

Um, I also did talk to Roy about one thing that has also been a potential future overhang, which is G LP.

Once we know that's a big story for medical devices.

And with Eli Lilly talking about its, uh, its trial results with sleep apnea, how does that impact?

Uh, a market leader like Phillips?

And so Roy actually said that because the sleep apnea market there's so much there's such a big, undiagnosed market, it actually will not impact the company and and could actually be AAA Tailwind.

And so I've heard that from others as well.

A competitor, ResMed has said pretty much the same thing, Um, and that it could in fact be the opposite, create more demand and more awareness for the company, so that I thought was also pretty interesting.

Um, and we do know that, of course, with the, uh, the layoffs that they've had to deal with their part.

They're, you know, really well into their three year restructuring plan and just staying the course, Roy said that that's pretty much where they stand right now.

Just continue on that course, Uh, right.

Sizing and making sure that they can recover from the losses of the past.

It's a great reminder of kind of the widespread, idiosyncratic company impacts the GOP ones could have.

Right?

Even a company with, uh, you know, sleep apnea, right?

Treatments Could could be impacted.

So really interesting orange.

Thank you so much.

Really appreciate it as always.