Dutch healthcare technology and services company Philips today reported a 47% jump in third quarter earnings as sales and margins rose, but narrowly missed analysts' estimates.
The company's chief executive Frans Van Houten said the company expected further earnings improvements in the fourth quarter.
However "we remain concerned about risk due to volatility in the markets in which we operate," he added.
Philips' adjusted earnings before interest, taxes and amortisation (EBITA) grew to €649m from €429m the same time last year.
Analysts polled for Reuters were expecting adjusted EBITA of €651m.
Comparable sales rose 2% to €5.90 billion. Van Houten said sales at the company's core "HeathTech" portfolio were up 5%, with order intake up 8%.
Group sales were dragged lower by the results of Philips Lighting, which Philips continues to own after its May spinoff.
Philips shed the division to reinvent itself as a healthcare company, and to allow Lighting to pursue growth and acquisitions separately.
Philips now operates with three main divisions: personal health products, which include sleep masks as well as toothbrushes and shavers; diagnostic products, including high-end medical scanners and equipment; and "connected care", a business-to-business division that collaborates with hospitals to offer software and services on a large scale to help improve their performance.
Philips improved margins at the first two divisions, reporting group adjusted EBITA of 11% of sales, up from 9.8% a year ago.
However the connected care division saw margins shrink, with sales of patient-monitoring systems falling, mostly due to a "double digit decline in Western Europe" in the category, the company said.