Koninklijke Philips (NYSE:PHG) Shares Gap Up Following Earnings Beat

Key Points

• Koninklijke Philips shares surged from $25.66 to $28.36 following an earnings report that exceeded expectations, with earnings per share (EPS) of $0.41 compared to the forecast of $0.29.
• Several analysts have upgraded Koninklijke Philips from a "hold" to a "buy" rating, contributing to an average rating of "Buy" from research analysts.
• Institutional investors have increased their stakes in Koninklijke Philips, with Fiduciary Management Inc. WI raising its position by 21.7% during the first quarter.

Koninklijke Philips N.V. (NYSE:PHG - Get Free Report)'s stock price gapped up prior to trading on Tuesday following a stronger than expected earnings report. The stock had previously closed at $25.66, but opened at $28.36. Koninklijke Philips shares last traded at $28.27, with a volume of 443,621 shares traded.

The technology company reported $0.41 EPS for the quarter, beating the consensus estimate of $0.29 by $0.12. The company had revenue of $5.05 billion during the quarter, compared to the consensus estimate of $4.35 billion. Koninklijke Philips had a return on equity of 11.95% and a net margin of 1.00%.

Analyst Ratings Changes

Separately, Wall Street Zen downgraded Koninklijke Philips from a "buy" rating to a "hold" rating in a report on Saturday. Two equities research analysts have rated the stock with a hold rating, two have issued a buy rating and one has assigned a strong buy rating to the stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy".

Institutional Investors Weigh In On Koninklijke Philips

Several hedge funds have recently added to or reduced their stakes in the business. Fiduciary Management Inc. WI lifted its holdings in Koninklijke Philips by 21.7% during the 1st quarter. Fiduciary Management Inc. WI now owns 7,515,737 shares of the technology company's stock valued at $190,900,000 after purchasing an additional 1,339,055 shares during the last quarter. Dimensional Fund Advisors LP lifted its holdings in shares of Koninklijke Philips by 2.5% during the first quarter. Dimensional Fund Advisors LP now owns 4,396,095 shares of the technology company's stock worth $111,662,000 after buying an additional 106,044 shares in the last quarter. Northern Trust Corp lifted its holdings in shares of Koninklijke Philips by 5.1% during the first quarter. Northern Trust Corp now owns 1,690,402 shares of the technology company's stock worth $42,936,000 after buying an additional 81,653 shares in the last quarter. Causeway Capital Management LLC lifted its holdings in shares of Koninklijke Philips by 24.0% during the fourth quarter. Causeway Capital Management LLC now owns 1,566,850 shares of the technology company's stock worth $39,673,000 after buying an additional 303,428 shares in the last quarter. Finally, Envestnet Asset Management Inc. lifted its holdings in shares of Koninklijke Philips by 2.5% during the second quarter. Envestnet Asset Management Inc. now owns 1,351,015 shares of the technology company's stock worth $32,397,000 after buying an additional 32,663 shares in the last quarter. Institutional investors and hedge funds own 13.67% of the company's stock.

Koninklijke Philips Stock Up 1.0%

The company has a quick ratio of 0.79, a current ratio of 1.26 and a debt-to-equity ratio of 0.69. The company has a market cap of $25.48 billion, a price-to-earnings ratio of 139.26, a P/E/G ratio of 0.72 and a beta of 0.76. The stock has a fifty day moving average price of $24.03 and a two-hundred day moving average price of $24.98.

About Koninklijke Philips

Koninklijke Philips N.V. operates as a health technology company in North America, the Greater China, and internationally. The company operates through Diagnosis & Treatment Businesses, Connected Care Businesses, and Personal Health Businesses segments. It also provides diagnostic imaging solutions, includes magnetic resonance imaging, X-ray systems, and computed tomography (CT) systems and software comprising detector-based spectral CT solutions, as well as molecular and hybrid imaging solutions for nuclear medicine; echography solutions focused on diagnosis, treatment planning and guidance for cardiology, general imaging, obstetrics/gynecology, and point-of-care applications; integrated interventional systems, and interventional diagnostic and therapeutic devices to treat coronary artery and peripheral vascular disease.