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Bruker (BRKR) Up 6.8% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for Bruker (BRKR - Free Report) . Shares have added about 6.8% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Bruker due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Bruker Q2 Earnings Meet Estimates, Revenues Rise Y/Y
Bruker Corporation delivered adjusted earnings per share of 52 cents in the second quarter of 2024, up 4% year over year. The figure came in line with the Zacks Consensus Estimate.
The adjustments include expenses related to the amortization of purchased intangibles, acquisition-related costs and restructuring costs, among others.
GAAP earnings per share was 5 cents compared with 39 cents in the year-ago period.
Revenues in Detail
Bruker registered revenues of $800.7 million in the second quarter, up 17.4% year over year. The figure topped the Zacks Consensus Estimate by 0.6%.
Excluding the positive impacts of 11.1% from acquisitions and a 1.1% negative impact of foreign currency rates, the company witnessed organic revenue growth of 7.4%.
On a geographic basis, the United States witnessed a 35.9% year-over-year rise in revenues to $243.7 million. Our model forecast for this region was $208.5 million in sales.
Europe revenues increased 23.8% year over year to $275.8 million, while revenues in the Asia Pacific rose 1.5% to $226.6 million. Our model forecast for these regions was $272 million and $250 million, respectively, for the second quarter.
The Other category’s revenues decreased 3.5% year over year to $54.6 million. Our model’s projection was $44.6 million.
Segmental Analysis
Bruker reports results under two segments — BSI (comprising BioSpin, CALID and Nano) and Bruker Energy & Supercon Technologies (“BEST”).
Revenues in the BSI segment rose 19.7% to $735.6 million in the second quarter of 2024.
Within the segment, BioSpin Group’s revenues surged 34.3% from the year-ago quarter’s levels to $217.5 million. Our model’s projected revenues for the segment were $205.4 million. BioSpin’s organic revenues were up in the mid-20% range, driven by strength in the preclinical imaging and software businesses.
CALID’s revenues rose 16.9% year over year to $265.6 million. Our model forecast was $252.4 million. Organic revenues grew in the mid-single-digit percentage, with a strong performance from the MALDI Biotyper and molecular spectroscopy.
Revenues from the NANO group climbed 12.2% to $252.5 million. Our model projected $239.8 million for this segment. NANO organic revenues were flat as strength in electron microscopy and advanced X-ray was largely offset by softness in fluorescent microscopy.
The BEST segment’s revenues were $69.1 million, down 5% year over year. This fell short of our model’s projection of $83.8 million.
Margin Trend
Bruker’s gross profit rose 13% to $384.6 million. The gross margin contracted 190 basis points (bps) to 48% on a 21.9% rise in costs.
SG&A expenses rose 24.4% to $221.3 million. R&D expenses went up 29.9% year over year to $92.2 million. Adjusted operating expenses of $313.5 million increased 30% year over year.
The adjusted operating profit was $71.1 million, down 22.4% from the prior-year quarter’s levels. The adjusted operating margin contracted 455 bps to 8.9%.
Financial Position
Bruker exited the second quarter of 2024 with cash and cash equivalents of $169.7 million compared with $340.1 million at the end of the first quarter.
The total long-term debt (including the current portion) at the end of the second quarter of 2024 was $2.16 billion, up from $1.38 billion at the first quarter-end.
The cumulative net cash flow from operating activities was $22.7 million compared with $100.5 million during last year’s comparable period.
2024 Guidance
Bruker updated the outlook for 2024.
For the full year, the company now expects revenues in the range of $3.38-$3.44 billion (up from the previously guided range of $3.29-$3.35 billion). The updated guidance indicates year-over-year revenue growth of 14 on a reported basis (previously 11).
The Zacks Consensus Estimate for revenues is pegged at $3.39 billion.
BRKR expects its 2024 adjusted earnings per share in the range of $2.59-$2.64 (earlier $2.79-$2.84). The consensus estimate for earnings per share is pegged at $2.66.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
The consensus estimate has shifted -9.74% due to these changes.
VGM Scores
At this time, Bruker has a poor Growth Score of F, a grade with the same score on the momentum front. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Bruker has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Bruker belongs to the Zacks Instruments - Scientific industry. Another stock from the same industry, Mettler-Toledo (MTD - Free Report) , has gained 2.2% over the past month. More than a month has passed since the company reported results for the quarter ended June 2024.
Mettler-Toledo reported revenues of $946.75 million in the last reported quarter, representing a year-over-year change of -3.6%. EPS of $9.65 for the same period compares with $10.19 a year ago.
For the current quarter, Mettler-Toledo is expected to post earnings of $10 per share, indicating a change of +2% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.2% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Mettler-Toledo. Also, the stock has a VGM Score of D.
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Bruker (BRKR) Up 6.8% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Bruker (BRKR - Free Report) . Shares have added about 6.8% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Bruker due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Bruker Q2 Earnings Meet Estimates, Revenues Rise Y/Y
Bruker Corporation delivered adjusted earnings per share of 52 cents in the second quarter of 2024, up 4% year over year. The figure came in line with the Zacks Consensus Estimate.
The adjustments include expenses related to the amortization of purchased intangibles, acquisition-related costs and restructuring costs, among others.
GAAP earnings per share was 5 cents compared with 39 cents in the year-ago period.
Revenues in Detail
Bruker registered revenues of $800.7 million in the second quarter, up 17.4% year over year. The figure topped the Zacks Consensus Estimate by 0.6%.
Excluding the positive impacts of 11.1% from acquisitions and a 1.1% negative impact of foreign currency rates, the company witnessed organic revenue growth of 7.4%.
On a geographic basis, the United States witnessed a 35.9% year-over-year rise in revenues to $243.7 million. Our model forecast for this region was $208.5 million in sales.
Europe revenues increased 23.8% year over year to $275.8 million, while revenues in the Asia Pacific rose 1.5% to $226.6 million. Our model forecast for these regions was $272 million and $250 million, respectively, for the second quarter.
The Other category’s revenues decreased 3.5% year over year to $54.6 million. Our model’s projection was $44.6 million.
Segmental Analysis
Bruker reports results under two segments — BSI (comprising BioSpin, CALID and Nano) and Bruker Energy & Supercon Technologies (“BEST”).
Revenues in the BSI segment rose 19.7% to $735.6 million in the second quarter of 2024.
Within the segment, BioSpin Group’s revenues surged 34.3% from the year-ago quarter’s levels to $217.5 million. Our model’s projected revenues for the segment were $205.4 million. BioSpin’s organic revenues were up in the mid-20% range, driven by strength in the preclinical imaging and software businesses.
CALID’s revenues rose 16.9% year over year to $265.6 million. Our model forecast was $252.4 million. Organic revenues grew in the mid-single-digit percentage, with a strong performance from the MALDI Biotyper and molecular spectroscopy.
Revenues from the NANO group climbed 12.2% to $252.5 million. Our model projected $239.8 million for this segment. NANO organic revenues were flat as strength in electron microscopy and advanced X-ray was largely offset by softness in fluorescent microscopy.
The BEST segment’s revenues were $69.1 million, down 5% year over year. This fell short of our model’s projection of $83.8 million.
Margin Trend
Bruker’s gross profit rose 13% to $384.6 million. The gross margin contracted 190 basis points (bps) to 48% on a 21.9% rise in costs.
SG&A expenses rose 24.4% to $221.3 million. R&D expenses went up 29.9% year over year to $92.2 million. Adjusted operating expenses of $313.5 million increased 30% year over year.
The adjusted operating profit was $71.1 million, down 22.4% from the prior-year quarter’s levels. The adjusted operating margin contracted 455 bps to 8.9%.
Financial Position
Bruker exited the second quarter of 2024 with cash and cash equivalents of $169.7 million compared with $340.1 million at the end of the first quarter.
The total long-term debt (including the current portion) at the end of the second quarter of 2024 was $2.16 billion, up from $1.38 billion at the first quarter-end.
The cumulative net cash flow from operating activities was $22.7 million compared with $100.5 million during last year’s comparable period.
2024 Guidance
Bruker updated the outlook for 2024.
For the full year, the company now expects revenues in the range of $3.38-$3.44 billion (up from the previously guided range of $3.29-$3.35 billion). The updated guidance indicates year-over-year revenue growth of 14 on a reported basis (previously 11).
The Zacks Consensus Estimate for revenues is pegged at $3.39 billion.
BRKR expects its 2024 adjusted earnings per share in the range of $2.59-$2.64 (earlier $2.79-$2.84). The consensus estimate for earnings per share is pegged at $2.66.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
The consensus estimate has shifted -9.74% due to these changes.
VGM Scores
At this time, Bruker has a poor Growth Score of F, a grade with the same score on the momentum front. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Bruker has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Bruker belongs to the Zacks Instruments - Scientific industry. Another stock from the same industry, Mettler-Toledo (MTD - Free Report) , has gained 2.2% over the past month. More than a month has passed since the company reported results for the quarter ended June 2024.
Mettler-Toledo reported revenues of $946.75 million in the last reported quarter, representing a year-over-year change of -3.6%. EPS of $9.65 for the same period compares with $10.19 a year ago.
For the current quarter, Mettler-Toledo is expected to post earnings of $10 per share, indicating a change of +2% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.2% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Mettler-Toledo. Also, the stock has a VGM Score of D.