Koninklijke Philips N.V ( PHG ) stock is trading higher on Monday after the company released its second-quarter 2024 financial results.

The company’s second-quarter sales reached 4.46 billion euros ($4.83 billion), beating the consensus of 4.43 billion euros.

Comparable sales increased by 2%, driven by growth across all segments. The decline in China partly offsets growth in mature and growth geographies.

Comparable order intake grew 9% in the quarter and 3% in the first half of 2024, reflecting quarterly unevenness in the order-intake pattern.

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China remains a fundamentally attractive growth market with strong underlying demand while the government’s anti-corruption measures continue to impact short-term hospital order lead times.

The company reported an adjusted EPS of 0.30 euros, up from 0.27 euros a year ago.

“I am encouraged by our return to order intake growth this quarter, primarily driven by North America. Within a challenging macro environment, we achieved strong margin improvement, supported by our productivity program, solid operational cashflow due to improved working capital management, and comparable sales growth in line with our plan,” CEO Roy Jakobs said in a statement.

Bloomberg notes that the company is regaining investors’ confidence after a lower-than-expected settlement on U.S. claims linked to faulty sleep apnea devices in late April.

Diagnosis & Treatment comparable sales increased by 4%, with growth across Image Guided Therapy and Precision Diagnosis. Adjusted EBITA margin improved to 12.2%, mainly driven by improved sales, pricing and productivity measures.

Connected Care comparable sales increased 2%, driven by strong growth in Enterprise Informatics, while Monitoring comparable sales growth was flat. Adjusted EBITA margin improved to 8.8%, mainly driven by productivity measures and pricing.

Personal Health comparable sales increased by 2% globally, driven by sales growth outside of China. Adjusted EBITA margin improved to 16.9%, mainly driven by operational improvements and productivity measures.

The adjusted EBITDA margin increased to 11.1% from 10.1% last year, with improvement across all businesses.

Guidance: Looking ahead to fiscal 2024, Philips expects 3%-5% comparable sales growth, an adjusted EBITA margin of 11%-11.5%, and free cash flow of €0.9 billion to €1.1 billion.

Dutch health-technology company reiterated its confidence in delivering the 2025 plan, acknowledging that uncertainties remain.

The outlook excludes the potential impact of the ongoing Philips Respironics-related legal proceedings, including the U.S. Department of Justice investigation.

Price Action: PHG stock is up 10.1% at $28.36 during the premarket session at last check Monday.

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