Philips shares plunge on earnings miss
STORY: Philips shares plunged Monday (July 25) after earnings fell short of expectations.
The stock was off around 10% by lunchtime, and is now down around 40% this year.
Adjusted earnings hit around $220 million for the latest quarter.
That was around a third less than analysts had forecast.
Philips also cut its outlook for the year.
Chief Executive Frans van Houten said supply chain issues and inflation pressures were among the problems.
But he singled out China’s lockdowns as the single biggest issue.
The restrictions shut some of the medical equipment firm’s factories, and that of suppliers.
Philips also faces ongoing issues over a big product recall.
In 2021 it was raided by U.S. authorities over ventilators and other devices that contained a toxic foam part.
Philips said Monday it was in talks with the FBI over a settlement.
The recall has so far cost it close to $1 billion, and that doesn’t include possible costs from class action lawsuits.
