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Philips Inks Deal to Buy Australian Pharmacy Sleep Services
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In a bid to fortify its sleep and respiratory care portfolio, Koninklijke Philips N.V. (PHG - Free Report) recently entered into an agreement to acquire pharmacy sleep testing firm, Australian Pharmacy Sleep Services (“APSS”). The financial detail of the deal, likely to be closed in the second-quarter of 2017, has been kept under wraps.
Ever since unveiling the DreamStation portfolio, the company’s Sleep & Respiratory Care segment of Personal Health business vertical has proved to be a major growth catalyst. The currrent acquisition will likely bolster the already thriving business.
The Zacks Rank #3 (Hold) company’s shares performed marginally better than the Zacks categorized Electronic-Product Miscellaneous industry over the past six months. The stock returned 7.1% in comparison to the industry’s average gain of 6.3%.
The Deal in Detail
The Dutch technology company believes this strategic buyout will help it to fully access the Australian pharmacy channels, thus allowing it to accelerate the market traction of home sleep testing offerings. The retail pharmacy market will make it easier for Philips to offer simple and effective sleep screening.
Headquartered in Sydney, APSS has a robust sleep apnea program for pharmacies, including screening, home-based sleep studies based on Continuous Positive Airway Pressure (CPAP) therapy, training and services. The company has been working in association with medical professionals to assess, diagnose and treat sleep problems. With sleep deprivation being rampant in Australia, Philips remains confident that its connected sleep health solutions will greatly assist health personnel.
Presently, Philips is focusing on key opportunities in population health management by broadening its healthcare portfolio through collaborations with major health care organizations. Philips’ buyouts have helped it to supplement the growth of its core businesses. Previously acquired companies, including the Volcano and PathXL, have been boosting the company’s sales over the past few quarters.
Brokers are on the sidelines for the stock as its earnings estimates have stayed unchanged over the past 30 days. The Zacks Consensus Estimate for full-year 2017 has remained steady at $1.58 over the same time frame.
With four back-to-back earnings beats, Applied Materials has an average positive surprise of 3.9%.
Coherent beat estimates in all of the trailing four quarters, at an average of 10.0%.
Cohu has a striking earnings surprise history with an average positive surprise of 117.9% over the trailing four quarters, beating estimates all through.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Click here for the 6 trades >>
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Philips Inks Deal to Buy Australian Pharmacy Sleep Services
In a bid to fortify its sleep and respiratory care portfolio, Koninklijke Philips N.V. (PHG - Free Report) recently entered into an agreement to acquire pharmacy sleep testing firm, Australian Pharmacy Sleep Services (“APSS”). The financial detail of the deal, likely to be closed in the second-quarter of 2017, has been kept under wraps.
Ever since unveiling the DreamStation portfolio, the company’s Sleep & Respiratory Care segment of Personal Health business vertical has proved to be a major growth catalyst. The currrent acquisition will likely bolster the already thriving business.
The Zacks Rank #3 (Hold) company’s shares performed marginally better than the Zacks categorized Electronic-Product Miscellaneous industry over the past six months. The stock returned 7.1% in comparison to the industry’s average gain of 6.3%.
The Deal in Detail
The Dutch technology company believes this strategic buyout will help it to fully access the Australian pharmacy channels, thus allowing it to accelerate the market traction of home sleep testing offerings. The retail pharmacy market will make it easier for Philips to offer simple and effective sleep screening.
Headquartered in Sydney, APSS has a robust sleep apnea program for pharmacies, including screening, home-based sleep studies based on Continuous Positive Airway Pressure (CPAP) therapy, training and services. The company has been working in association with medical professionals to assess, diagnose and treat sleep problems. With sleep deprivation being rampant in Australia, Philips remains confident that its connected sleep health solutions will greatly assist health personnel.
Presently, Philips is focusing on key opportunities in population health management by broadening its healthcare portfolio through collaborations with major health care organizations. Philips’ buyouts have helped it to supplement the growth of its core businesses. Previously acquired companies, including the Volcano and PathXL, have been boosting the company’s sales over the past few quarters.
Brokers are on the sidelines for the stock as its earnings estimates have stayed unchanged over the past 30 days. The Zacks Consensus Estimate for full-year 2017 has remained steady at $1.58 over the same time frame.
Stocks to Consider
Some better-ranked stocks in the same space include Applied Materials, Inc. (AMAT - Free Report) , Coherent (COHR - Free Report) and Cohu, Inc. (COHU - Free Report) . All three stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
With four back-to-back earnings beats, Applied Materials has an average positive surprise of 3.9%.
Coherent beat estimates in all of the trailing four quarters, at an average of 10.0%.
Cohu has a striking earnings surprise history with an average positive surprise of 117.9% over the trailing four quarters, beating estimates all through.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Click here for the 6 trades >>