Philips' (PHG) Diagnosis & Treatment Segment Drives Growth

Zacks Equity Research

18 June 2024 at 11:34 am·3-min read

Philips’ PHG shares have gained 13.5% in the year-to-date period, outperforming the Zacks Medical sector’s growth of 5%. The company is continuously gaining from a strong Diagnosis & Treatment segment. It is making concerted efforts to bolster this segment further on the back of strengthening Precision Diagnosis and Image-Guided Therapy businesses.

These efforts are evident from the latest launch of Philips Image Guided Therapy Mobile C-arm System 9000, Zenition 90 Motorized, enhancing clinicians' productivity with automated workflows like Touch Screen Module and meeting complex vascular needs.

Philips’ rollout of the Duo Venous Stent System in a bid to boost its Image-Guided Therapy portfolio remains noteworthy. The Duo Venous Stent System is a medical device designed to treat patients with chronic venous insufficiency (CVI).

These device launches will enable the company to capitalize on growth opportunities present in the global image-guided therapy system market, which, per a Mordor Intelligence report, is expected to witness a CAGR of 6.5% between 2024 and 2029.

Koninklijke Philips N.V. Price and Consensus

Koninklijke Philips N.V. price-consensus-chart | Koninklijke Philips N.V. Quote

Other Efforts to Boost Diagnosis & Treatment

Philips has been taking continuous strides to strengthen its Precision Diagnosis portfolio as well, in addition to the Image-Guided Therapy portfolio, in a bid to boost its Diagnosis & Treatment segment.

Recently, Philips launched an AI-enabled cardiovascular ultrasound platform with FDA 510(k) clearance, boosting its Precision Diagnosis portfolio. The platform combines Philips’ EPIQ CVx and Affiniti CVx ultrasound systems, enhancing cardiac ultrasound analysis speed and reducing echocardiography lab workload.

PHG also unveiled HealthSuite Imaging, an AI-enabled cloud-based Picture Archiving and Communication System.

In addition, Philips recently partnered with Synthetic MR to launch Smart Quant Neuro 3D, a breakthrough in objective decision support for diagnosing and treating brain disorders like MS, TBI and dementia, bolstering PHG’s prospects in the brain imaging market.

Strengthening Diagnosis & Treatment offerings are boosting Phillips’ customer base.

This is evident from the recent 10-year strategic collaboration between Philips and Nicklaus Children's Health System. Nicklause will use Philips technologies like Ingenia Ambition X MR and EPIQ CVx ultrasound, AI-enabled radiology workflow solutions, and patient experience technologies to improve patient and staff experience, outcomes and innovation in pediatric care.

Wrapping Up

All the above-mentioned endeavors will continue aiding the Diagnosis & Treatment segment in the near term.

Philips expects 2024 comparable sales growth for the underlined segment in the band of 3-5%.

The strengthening Diagnosis & Treatment segment is expected to aid the overall financial performance of the company in the upcoming period.

Philips expects 2024 comparable sales growth in the band of 3-5%.

The Zacks Consensus Estimate for 2024 sales is pegged at $20.15 billion, indicating growth of 2.5% from the year-ago quarter.

The consensus mark for 2024 earnings is pegged at $1.54 per share, indicating an increase of 14.1% year over year. The figure has moved upward by 0.7% in the past 30 days.

Zacks Rank & Stocks to Consider

Currently, Philips carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader medical market sector are DaVita DVA, ICON ICLR and Encompass Health EHC, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

DaVita shares have gained 34.8% in the year-to-date period. DVA’s long-term earnings growth rate is currently projected at 13.60%.

ICON shares have gained 11.8% in the year-to-date period. ICLR’s long-term earnings growth rate is currently projected at 15.43%.

Encompass Health shares have rallied 28.1% in the year-to-date period. The long-term earnings growth rate for EHC is currently projected at 15.65%.

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Koninklijke Philips N.V. (PHG) : Free Stock Analysis Report

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Koninklijke Philips N.V. Price and Consensus

Other Efforts to Boost Diagnosis & Treatment

Wrapping Up

Zacks Rank & Stocks to Consider

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