Earnings Miss: Koninklijke Philips N.V. Missed EPS By 18% And Analysts Are Revising Their Forecasts

The analysts might have been a bit too bullish on Koninklijke Philips N.V. (AMS:PHIA), given that the company fell short of expectations when it released its quarterly results last week. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at €4.4b, statutory earnings missed forecasts by 18%, coming in at just €0.19 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Koninklijke Philips

Taking into account the latest results, the current consensus from Koninklijke Philips' 15 analysts is for revenues of €19.2b in 2025. This would reflect a reasonable 6.6% increase on its revenue over the past 12 months. Earnings are expected to improve, with Koninklijke Philips forecast to report a statutory profit of €1.16 per share. Before this earnings report, the analysts had been forecasting revenues of €19.4b and earnings per share (EPS) of €1.18 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at €29.13. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Koninklijke Philips analyst has a price target of €40.00 per share, while the most pessimistic values it at €24.70. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. For example, we noticed that Koninklijke Philips' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 5.2% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 0.7% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 7.2% annually for the foreseeable future. Although Koninklijke Philips' revenues are expected to improve, it seems that the analysts are still bearish on the business, forecasting it to grow slower than the broader industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Koninklijke Philips' revenue is expected to perform worse than the wider industry. The consensus price target held steady at €29.13, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Koninklijke Philips going out to 2026, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for Koninklijke Philips you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.