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Bruker (BRKR) Q4 Earnings Meet Estimates, Revenues Surpass

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Bruker Corporation (BRKR - Free Report) delivered adjusted earnings per share (EPS) of 59 cents in the fourth quarter of 2021, rising 1.7% year over year. The figure was in line with the Zacks Consensus Estimate.

The adjustments include expenses related to purchased intangible amortization, acquisition-related costs and restructuring costs, among others.

GAAP EPS for the quarter was 50 cents a share, reflecting an 11.1% surge from the year-earlier figure.

Full-year adjusted EPS was $2.10, reflecting a 55.6% improvement from the year-earlier figure.

Revenues in Detail

Bruker registered revenues of $683.5 million in the fourth quarter, up 8.9% year over year. The figure surpassed the Zacks Consensus Estimate by 2.8%.

Excluding the positive impact of 0.3% from acquisitions and a negative impact of 2.8% from unfavorable changes in foreign currency rates, the company saw organic revenue growth of 11.4%.

Solid performances by all the reporting segments driven by robust demand for the company’s solutions and products significantly drove the top line.

Bruker Corporation Price, Consensus and EPS Surprise

Bruker Corporation Price, Consensus and EPS Surprise

Bruker Corporation price-consensus-eps-surprise-chart | Bruker Corporation Quote

Full-year revenues were $2.42 billion, reflecting 21.7% growth from the year-ago period.

Q4 in Detail

Geographically, the United States witnessed a 28.4% year-over-year rise in revenues in the reported quarter. Europe revenues rose 0.8% year over year, whereas revenues in the Asia Pacific inched up 3.8%. Further, the Other category’s revenues climbed 30.7% year over year.

Segments in Detail

Bruker reports results under three segments, namely, BSI Life Science (comprising BioSpin and CALID), BSI Nano and BEST.

In the fourth quarter, BioSpin Group revenues fell 2.6% from the year-ago quarter to $196.6 million. This decline can be attributed to an extremely high field revenue mix headwind as well as a previous pull-forward of nearly $15 million in China-related revenues into the third quarter of 2021.

CALID revenues rose 14.5% year over year to $239.7 million in the fourth quarter, primarily resulting from strong performance in life science mass spectrometry and the MALDI Biotyper franchise. However, a year-over-year decline in SARS-CoV-2 testing revenues partially offset this growth.

Total BSI Life Science revenues were $436.3 million, up 6.1% year over year.

Revenues in the Nano group climbed 18.1% to $192.9 million, driven by strength in the industrial research and academic businesses.

The BSI segment (including BSI Life Science and BSI Nano Segments) improved 9.5% year over year, including organic revenue growth of 11.8%.

In the fourth quarter, the company’s BEST segment revenues were $57.8 million, up 5.7% year over year. Organically, BEST segment revenues improved 6.8%, net of intercompany eliminations.

Margin Trend

In the quarter under review, Bruker’s gross profit rose 9.1% to $341.6 million. Gross margin expanded 10 basis points (bps) to 49.9%.

Meanwhile, selling, general & administrative expenses rose 17.6% to $153.3 million. Research and development expenses went up 1.8% year over year to $58.1 million. Adjusted operating expenses of $211.4 million increased 12.7% year over year.

Adjusted operating profit totaled $130.2 million, reflecting a 3.7% rise from the prior-year quarter. However, adjusted operating margin in the fourth quarter contracted 95 bps to 19%.

Financial Position

Bruker exited 2021 with cash and cash equivalents, and short-term investments of $1.17 billion compared with $731.8 million at the end of 2020. Long-term debt (including the current portion) at the end of 2021 was $1.33 billion compared with $844.5 million at the end of 2019.

Cumulative net cash flow from operating activities at the end of the fourth quarter was $282.4 million compared with $332.2 million a year ago.

The company incurred expenses of $24.2 million as payment of dividends to common stockholders and repurchased $153.3 million worth of stocks for 2021.

2022 Guidance

Bruker has provided its financial outlook for 2022.

The company expects revenue growth of approximately 5-7%. The Zacks Consensus Estimate for revenues is pegged at $2.55 billion. Organic revenue growth is projected within 6-8%.

The company expects full-year adjusted EPS in the band of $2.29-$2.33, indicating an uptick of 9-11% from the 2021 reported figure. The Zacks Consensus Estimate for the same is pegged at $2.28.

Our Take

Bruker ended the fourth quarter of 2021 with better-than-expected revenues. The top line was driven by robust revenue growth across all geographies as well as revenue growth across the BSI and BEST businesses. CALID revenues benefitted from robust growth in life science mass spectrometry and the MALDI Biotyper franchise. The company delivered robust bookings and backlog growth in the fourth quarter, buoying optimism. The company has also increased its investments in Project Accelerate 2.0 initiatives and operational excellence drive, focusing on key opportunities in proteomics and spatial biology. Further, Bruker’s financial outlook for 2022 with solid growth projections over 2021 instills investors’ confidence.

However, the year-over-year decline in BioSpin Group revenues does not bode well. The rise in operating costs is concerning. The company is also faced with challenges related to supply chain and logistics delays, raising apprehension. Contraction of adjusted operation margin is another downside.

Zacks Rank and Other Key Picks

Bruker currently carries a Zacks Rank #2 (Buy).

Here are a few other stocks worth considering, as these have the right combination of elements to beat on earnings this reporting cycle.

AMN Healthcare Services, Inc. (AMN - Free Report) has an Earnings ESP of +2.52% and a Zacks Rank of #2. The company is slated to release fourth quarter and full-year 2021 results on Feb 17. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

AMN Healthcare’s long-term earnings growth rate is estimated at 16.2%. AMN’s earnings yield of 6.5% compares favorably with the industry’s 0.7%.

Allscripts Healthcare Solutions, Inc. (MDRX - Free Report) has an Earnings ESP of +5.38% and a Zacks Rank of #2. Allscripts will release fourth quarter and full-year 2021 results on Feb 24.

Allscripts’ long-term earnings growth rate is estimated at 11.1%. MDRX’s earnings yield of 4.9% compares favorably with the industry’s (4.9%).

Henry Schein, Inc. (HSIC - Free Report) has an Earnings ESP of +0.83% and a Zacks Rank of #2. Henry Schein will report fourth quarter and full-year 2021 results on Feb 15.

Henry Schein’s long-term earnings growth rate is estimated at 11.8%. HSIC’s earnings yield of 6.1% compares favorably with the industry’s 4.5%.

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