We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Here's Why You Should Hold on to Bruker (BRKR) Stock for Now
Read MoreHide Full Article
Bruker Corporation (BRKR - Free Report) is well poised for growth in the coming months, backed by BSI Nano Group prospects. Robust revenue growth in the BioSpin Group and CALID Group buoys optimism. However, escalating expenses and foreign currency fluctuations do not bode well.
Over the past year, this Zacks Rank #3 (Hold) stock has gained 40.7% compared with 33.7% growth of the industry and 28.9% rise of the S&P 500 composite.
The renowned medical device company has a market capitalization of $12.00 billion. Over the past five years, the company has gained 7.4%, ahead of the industry’s 9.5% rise. The long-term expected growth rate is estimated at 20.6%, compared with the industry’s growth expectation of 23.1%.
Let’s delve deeper
Key Growth Drivers
BSI Nano Group Prospects Bright: Bruker’s Nano Group’s microelectronics and semiconductor metrology tools continued to perform well in the third quarter of 2021 on a year-to-date basis, with strength in bookings and backlog. During the quarter, revenues climbed 18.9%, with advanced X-ray, Nano Surfaces and Nano Analysis tools registering a substantial year-over-year increase in revenues. Revenues from life science fluorescence microscopy climbed sharply year over year, driven by product innovation and strong academic demand.
CALID Group Holds Potential: Bruker’s CALID Group has been making decent progress lately. During the third quarter, the business recorded an improvement of 13.4% year over year. Further, the solid performance in this business in the first nine months of 2021 primarily resulted from continued growth in mass spectrometry and microbiology businesses along with strength in the FTIR/Near IR/Raman molecular spectroscopy products lines. Continued robust growth in the timsTOF unbiased 4D proteomics platform and a rebound in research MALDI TOF product line also drove the top line.
Image Source: Zacks Investment Research
Strong Prospects for BioSpin: In the third quarter, BioSpin Group revenues improved 22.6% from the year-ago quarter. BioSpin achieved revenue recognition of its third gigahertz class system, a 1.2-gigahertz NMR installed at Utrecht University in the Netherlands, this year. The segment’s revenues also benefited from early revenue recognition of certain gigahertz NMR class systems in China, which was previously projected to be delayed until the fourth quarter. Management continues to anticipate revenue contribution from the fourth gigahertz class system in the fourth quarter of 2021.
Downsides
Exposed to Currency Movement: Bruker conducts 80% of its business in international markets. As a result, currency fluctuations continue to result in foreign currency transaction losses at the company. In addition, currency fluctuations could cause the price of Bruker’s products to be less competitive than its principal competitors' offerings.
Competitive Landscape: Bruker faces substantial competition in a consolidating industry and expects competition in its markets to increase further. Bruker BioSpin competes with companies that offer magnetic resonance spectrometers, mainly JEOL and Oxford Instruments. In the field of preclinical imaging, Bruker BioSpin faces competitive threats from Perkin Elmer, Mediso, Trifoil, MR Solutions, RS2D, Visualsonics (Fuji Film) and others.
Estimate Trend
Bruker has been witnessing a positive estimate revision trend for 2021. Over the past 90 days, the Zacks Consensus Estimate for its earnings has moved 8.3% north to $2.09.
The Zacks Consensus Estimate for its fourth-quarter 2021 revenues is pegged at $662.9 million, suggesting a 5.6% rise from the year-ago reported number.
Thermo Fisher surpassed earnings estimates in each of the trailing four quarters, the average surprise being 9.02%. The company currently carries a Zacks Rank of 2 (Buy).
Thermo Fisher’s long-term earnings growth rate is estimated at 14%. The company’s earnings yield of 3.7% compares favorably with the industry’s (3.6%).
Abiomed beat earnings estimates in each of the trailing four quarters, the average surprise being 5.8%. The company currently carries a Zacks Rank #2.
Abiomed’s long-term earnings growth rate is estimated at 20%. The company’s earnings yield of 1.2% compares favorably with the industry’s (3.6%).
Laboratory Corporation surpassed earnings estimates in each of the trailing four quarters, the average surprise being 25.7%. The company currently carries a Zacks Rank #2.
Laboratory Corporation’s long-term earnings growth rate is estimated at 10.6%. The company’s earnings yield of 9.4% compares favorably with the industry’s 3.4%.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Here's Why You Should Hold on to Bruker (BRKR) Stock for Now
Bruker Corporation (BRKR - Free Report) is well poised for growth in the coming months, backed by BSI Nano Group prospects. Robust revenue growth in the BioSpin Group and CALID Group buoys optimism. However, escalating expenses and foreign currency fluctuations do not bode well.
Over the past year, this Zacks Rank #3 (Hold) stock has gained 40.7% compared with 33.7% growth of the industry and 28.9% rise of the S&P 500 composite.
The renowned medical device company has a market capitalization of $12.00 billion. Over the past five years, the company has gained 7.4%, ahead of the industry’s 9.5% rise. The long-term expected growth rate is estimated at 20.6%, compared with the industry’s growth expectation of 23.1%.
Let’s delve deeper
Key Growth Drivers
BSI Nano Group Prospects Bright: Bruker’s Nano Group’s microelectronics and semiconductor metrology tools continued to perform well in the third quarter of 2021 on a year-to-date basis, with strength in bookings and backlog. During the quarter, revenues climbed 18.9%, with advanced X-ray, Nano Surfaces and Nano Analysis tools registering a substantial year-over-year increase in revenues. Revenues from life science fluorescence microscopy climbed sharply year over year, driven by product innovation and strong academic demand.
CALID Group Holds Potential: Bruker’s CALID Group has been making decent progress lately. During the third quarter, the business recorded an improvement of 13.4% year over year. Further, the solid performance in this business in the first nine months of 2021 primarily resulted from continued growth in mass spectrometry and microbiology businesses along with strength in the FTIR/Near IR/Raman molecular spectroscopy products lines. Continued robust growth in the timsTOF unbiased 4D proteomics platform and a rebound in research MALDI TOF product line also drove the top line.
Strong Prospects for BioSpin: In the third quarter, BioSpin Group revenues improved 22.6% from the year-ago quarter. BioSpin achieved revenue recognition of its third gigahertz class system, a 1.2-gigahertz NMR installed at Utrecht University in the Netherlands, this year. The segment’s revenues also benefited from early revenue recognition of certain gigahertz NMR class systems in China, which was previously projected to be delayed until the fourth quarter. Management continues to anticipate revenue contribution from the fourth gigahertz class system in the fourth quarter of 2021.
Downsides
Exposed to Currency Movement: Bruker conducts 80% of its business in international markets. As a result, currency fluctuations continue to result in foreign currency transaction losses at the company. In addition, currency fluctuations could cause the price of Bruker’s products to be less competitive than its principal competitors' offerings.
Competitive Landscape: Bruker faces substantial competition in a consolidating industry and expects competition in its markets to increase further. Bruker BioSpin competes with companies that offer magnetic resonance spectrometers, mainly JEOL and Oxford Instruments. In the field of preclinical imaging, Bruker BioSpin faces competitive threats from Perkin Elmer, Mediso, Trifoil, MR Solutions, RS2D, Visualsonics (Fuji Film) and others.
Estimate Trend
Bruker has been witnessing a positive estimate revision trend for 2021. Over the past 90 days, the Zacks Consensus Estimate for its earnings has moved 8.3% north to $2.09.
The Zacks Consensus Estimate for its fourth-quarter 2021 revenues is pegged at $662.9 million, suggesting a 5.6% rise from the year-ago reported number.
Key Picks
Few better-ranked stocks in the broader medical space include Thermo Fisher Scientific Inc. (TMO - Free Report) , Abiomed, Inc. and Laboratory Corporation of America Holdings (LH - Free Report) . You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Thermo Fisher surpassed earnings estimates in each of the trailing four quarters, the average surprise being 9.02%. The company currently carries a Zacks Rank of 2 (Buy).
Thermo Fisher’s long-term earnings growth rate is estimated at 14%. The company’s earnings yield of 3.7% compares favorably with the industry’s (3.6%).
Abiomed beat earnings estimates in each of the trailing four quarters, the average surprise being 5.8%. The company currently carries a Zacks Rank #2.
Abiomed’s long-term earnings growth rate is estimated at 20%. The company’s earnings yield of 1.2% compares favorably with the industry’s (3.6%).
Laboratory Corporation surpassed earnings estimates in each of the trailing four quarters, the average surprise being 25.7%. The company currently carries a Zacks Rank #2.
Laboratory Corporation’s long-term earnings growth rate is estimated at 10.6%. The company’s earnings yield of 9.4% compares favorably with the industry’s 3.4%.