Philips (PHG 37.17, +1.09) has climbed 3.0% in pre-market after reporting second quarter results and announcing a share buyback.
The Dutch conglomerate reported second quarter earnings of EUR0.27 per share, which may not compare to analyst estimates. Revenue increased 3.9% year-over-year to EUR4.29 billion, which was shy of expectations. Hoping to offset the revenue shortfall, the company announced that a share buyback program in the amount of EUR1.50 billion will be commenced in the third quarter of 2017.
Comparable sales increased 4.0% while comparable order intake grew 8.0% when compared to the second quarter of 2016. Sales in the Personal Health business increased 6.0% to EUR1.76 billion in nominal terms and on a comparable basis Personal Health adjusted EBITDA margin expanded to 15.3% from 14.1% one year ago, thanks to operational leverage from growth. Double-digit growth in China, Middle East & Turkey, and Latin America fueled the segment's revenue growth. Mature geographies recorded low-single digit growth rates.
Diagnosis & Treatment sales increased 4.0% to EUR1.67 billion in nominal terms and grew 3.0% on a comparable basis. Adjusted EBITDA margin improved to 9.0% from 8.2% thanks to higher volumes and product mix. Comparable sales growth was fueled by double-digit growth in Western Europe and high-single-digit growth in North America. Growth geographies saw a mid-single digit decline as mid-single digit growth in China was offset by declines in Middle East & Turkey, India, and Africa.
Connected Care & Health Informatics revenue was unchanged in nominal terms, holding at EUR768 million. On a comparable basis, revenue increased 1.0%. Growth geographies showed low-single digit growth while Middle East & Turkey and India recorded double-digit growth. Adjusted EBITDA margin improved to 8.5% from 7.6% due to cost productivity.
HealthTech Other sales declined 8.6% year-over-year to EUR96 million due to lower royalty income resulting from foreseen expiration of licenses.