Royal Philips (NYSE:PHG) shares took a dip today on fourth-quarter results that topped the consensus forecast but revealed a profit decrease of more than 20%.
The Amsterdam-based company posted profits of $611.9 million, or 67¢ per share, on sales of $6.6 billion for the three months ended Dec. 31, 2019, for a 21.9% bottom-line slide on sales growth of 6.2%.
Adjusted to exclude one-time items, earnings per share were 91¢, 7¢ ahead of Wall Street, where analysts were looking for sales of $6.7 billion.
Philips CEO Frans van Houten said in a news release that the company is aiming for 4-6% comparable sales growth and an improvement on its adjusted EBITA margin. He also said the company’s profitability improvement for 2019 fell short of the company’s plan, in some part due to headwinds.
Philips did not disclose any updates regarding its expected adjusted EPS or sales guidance for fiscal 2020.
PHG shares were down -2.6% at $47.44 per share in early-morning trading today.