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Why Is Bruker (BRKR) Up 0.9% Since Last Earnings Report?
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It has been about a month since the last earnings report for Bruker (BRKR - Free Report) . Shares have added about 0.9% in that time frame, underperforming 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 its most recent earnings report in order to get a better handle on the important catalysts.
Bruker Q3 Earnings Lag Estimates, Revenues Increase Y/Y
Bruker Corporation delivered adjusted earnings per share of 60 cents for the third quarter of 2024, down 18.9% year over year. The figure missed the Zacks Consensus Estimate by 1.6%.
The adjustments include expenses related to the amortization of purchased intangibles, acquisition-related costs and restructuring costs, among others.
GAAP earnings per share was 27 cents compared with 60 cents in the year-ago period.
BRKR’S Revenues in Detail
Bruker's third-quarter revenues were $864.4 million, up 16.4% year over year. However, the figure missed the Zacks Consensus Estimate by 0.1%.
Excluding the positive impacts of 12.5% from acquisitions and a 0.7% positive impact of foreign currency rates, the company witnessed organic revenue growth of 3.1%.
On a geographic basis, the United States witnessed a 13.2% year-over-year rise in revenues to $239.0 million. Our model forecast for this region’s sales was $233.9 million.
Europe revenues increased 15.1% year over year to $290 million, while Asia Pacific revenues rose 14.4% to $262.4 million. Our model forecast for Europe and the Asia Pacific was $322.1 million and $267.7 million, respectively, for the third quarter.
The Other category’s revenues increased 44.8% year over year to $73 million. Our model’s projection was $26.9 million.
BRKR’s 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 18.2% to $799.5 million in the third quarter of 2024.
Within the segment, BioSpin Group’s revenues surged 17.5% from the year-ago quarter’s levels to $233 million. Our model’s projected revenues for the segment were $247.3 million. BioSpin’s organic revenues were up in the low double-digit percentage range, driven by strength in magnetic resonance and services businesses.
CALID’s revenues rose 16.8% year over year to $279.4 million. CALID’s organic revenues declined by a low single-digit percentage, as strong performance from the MALDI Biotyper and applied mass spectrometry businesses was more than offset by softness in biopharma. Our model forecast was $280.8 million.
Revenues from the NANO group climbed 20.3% to $287.1 million. Our model projected revenues of $260.8 million for this segment. NANO’s organic revenues grew in the middle teens, with strong revenue growth in industrial research and semiconductor metrology bolstered by the AI megatrend.
The BEST segment’s revenues were $68.7 million, down 2.7% year over year. Revenues fell short of our model’s projection of $77.3 million.
Bruker’s Margin Trend
Bruker’s gross profit rose 9.4% to $418.6 million. The gross margin contracted 308 basis points (bps) to 48.4% on a 23.8% rise in costs.
SG&A expenses rose 30.2% to $229.9 million. R&D expenses went up 37.6% year over year to $98.1 million. Adjusted operating expenses of $328.0 million increased 32.2% year over year.
The adjusted operating profit was $90.8 million, down 32.7% from the prior-year quarter’s levels. The adjusted operating margin contracted 766 bps to 10.5%.
Financial Position
Bruker exited the third quarter of 2024 with cash and cash equivalents of $148.1 million compared with $169.7 million at the end of the second quarter.
The total long-term debt (including the current portion) at the end of the third quarter of 2024 was $2.26 billion, up from $1.16 billion at second-quarter end.
The cumulative net cash flow from operating activities was $61.3 million compared with $144.6 million during last year’s comparable period.
2024 Guidance
Bruker lowered its 2024 outlook.
For the full year, the company now expects revenues in the range of $3.34 to $3.37 (down from the previously guided range of $3.38-$3.44 billion). The updated guidance indicates year-over-year revenue growth of 12.5%-13.5% on a reported basis (previously 14).
The Zacks Consensus Estimate for revenues is pegged at $3.39 billion.
BRKR expects its 2024 adjusted earnings per share in the range of $2.36-$2.41 (earlier $2.59-$2.64). The consensus estimate for earnings per share is pegged at $2.61.
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 -20.91% due to these changes.
VGM Scores
Currently, 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. It's no surprise Bruker has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
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Why Is Bruker (BRKR) Up 0.9% Since Last Earnings Report?
It has been about a month since the last earnings report for Bruker (BRKR - Free Report) . Shares have added about 0.9% in that time frame, underperforming 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 its most recent earnings report in order to get a better handle on the important catalysts.
Bruker Q3 Earnings Lag Estimates, Revenues Increase Y/Y
Bruker Corporation delivered adjusted earnings per share of 60 cents for the third quarter of 2024, down 18.9% year over year. The figure missed the Zacks Consensus Estimate by 1.6%.
The adjustments include expenses related to the amortization of purchased intangibles, acquisition-related costs and restructuring costs, among others.
GAAP earnings per share was 27 cents compared with 60 cents in the year-ago period.
BRKR’S Revenues in Detail
Bruker's third-quarter revenues were $864.4 million, up 16.4% year over year. However, the figure missed the Zacks Consensus Estimate by 0.1%.
Excluding the positive impacts of 12.5% from acquisitions and a 0.7% positive impact of foreign currency rates, the company witnessed organic revenue growth of 3.1%.
On a geographic basis, the United States witnessed a 13.2% year-over-year rise in revenues to $239.0 million. Our model forecast for this region’s sales was $233.9 million.
Europe revenues increased 15.1% year over year to $290 million, while Asia Pacific revenues rose 14.4% to $262.4 million. Our model forecast for Europe and the Asia Pacific was $322.1 million and $267.7 million, respectively, for the third quarter.
The Other category’s revenues increased 44.8% year over year to $73 million. Our model’s projection was $26.9 million.
BRKR’s 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 18.2% to $799.5 million in the third quarter of 2024.
Within the segment, BioSpin Group’s revenues surged 17.5% from the year-ago quarter’s levels to $233 million. Our model’s projected revenues for the segment were $247.3 million. BioSpin’s organic revenues were up in the low double-digit percentage range, driven by strength in magnetic resonance and services businesses.
CALID’s revenues rose 16.8% year over year to $279.4 million. CALID’s organic revenues declined by a low single-digit percentage, as strong performance from the MALDI Biotyper and applied mass spectrometry businesses was more than offset by softness in biopharma. Our model forecast was $280.8 million.
Revenues from the NANO group climbed 20.3% to $287.1 million. Our model projected revenues of $260.8 million for this segment. NANO’s organic revenues grew in the middle teens, with strong revenue growth in industrial research and semiconductor metrology bolstered by the AI megatrend.
The BEST segment’s revenues were $68.7 million, down 2.7% year over year. Revenues fell short of our model’s projection of $77.3 million.
Bruker’s Margin Trend
Bruker’s gross profit rose 9.4% to $418.6 million. The gross margin contracted 308 basis points (bps) to 48.4% on a 23.8% rise in costs.
SG&A expenses rose 30.2% to $229.9 million. R&D expenses went up 37.6% year over year to $98.1 million. Adjusted operating expenses of $328.0 million increased 32.2% year over year.
The adjusted operating profit was $90.8 million, down 32.7% from the prior-year quarter’s levels. The adjusted operating margin contracted 766 bps to 10.5%.
Financial Position
Bruker exited the third quarter of 2024 with cash and cash equivalents of $148.1 million compared with $169.7 million at the end of the second quarter.
The total long-term debt (including the current portion) at the end of the third quarter of 2024 was $2.26 billion, up from $1.16 billion at second-quarter end.
The cumulative net cash flow from operating activities was $61.3 million compared with $144.6 million during last year’s comparable period.
2024 Guidance
Bruker lowered its 2024 outlook.
For the full year, the company now expects revenues in the range of $3.34 to $3.37 (down from the previously guided range of $3.38-$3.44 billion). The updated guidance indicates year-over-year revenue growth of 12.5%-13.5% on a reported basis (previously 14).
The Zacks Consensus Estimate for revenues is pegged at $3.39 billion.
BRKR expects its 2024 adjusted earnings per share in the range of $2.36-$2.41 (earlier $2.59-$2.64). The consensus estimate for earnings per share is pegged at $2.61.
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 -20.91% due to these changes.
VGM Scores
Currently, 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. It's no surprise Bruker has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.