NEW YORK (TheStreet) -- Koninklijke Philips (PHG) shares are up 2.1% to $32.10 on Tuesday as investors have reacted positively to company's announcement that its Healthcare division CEO Deborah DiSanzo was stepping down.
The move comes after the company reported that its healthcare business will post second quarter EBITA below analyst expectations.
The company announced that it expects a second quarter EBITA of $299.4 million, while analysts were expecting a second quarter EBITA of $543.9 million.
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The healthcare division will now report directly to company CEO Frans van Houten.
TheStreet Ratings team rates KONINKLIJKE PHILIPS NV as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate KONINKLIJKE PHILIPS NV (PHG) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we find that the growth in the company's net income has been quite unimpressive."