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.
Bruker Corporation (BRKR) Hits 52-Week High: What's Driving It?
Read MoreHide Full Article
Shares of Bruker Corporation (BRKR - Free Report) reached a new 52-week high of $79.33 on Mar 31, before closing the session marginally lower at $78.84.
In the past year, this Zacks Rank #3 (Hold) stock has risen 21.4% against a 0.4% decline of the industry and the S&P 500 composite’s fall of 11.3%.
In the past five years, Bruker registered earnings growth of 12.9%, comparing favorably with the industry’s 8.5% rise. The company’s long-term expected growth rate of 22.3% is in line with the industry’s growth projection. Bruker’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and matched the same in one, the average surprise being 11.71%.
Bruker is witnessing an upward trend in its stock price, prompted by the strong demand for its high-value solutions and differentiated instruments. The optimism led by the solid fourth-quarter 2022 performance and a revenue and EPS growth outlook in 2023 are expected to contribute. However, rising costs and fiercely competitive markets are major downsides.
Let’s delve deeper.
Image Source: Zacks Investment Research
Key Growth Drivers
Segmental Prospects: In the fourth quarter of 2022, revenues from the BSI Nano group were particularly strong, as reported in semiconductor industrial markets. A well-rounded performance over the year, with strong bookings and backlog in the group’s microelectronics and semiconductor metrology tools, will potentially contribute to the segment’s growth.
CALID Group’s revenues increased in the high-single-digit percentage, with continued growth in the life science mass spectrometry business and strength in proteomics applications. The timsTOF platform, in particular, saw robust demand in applications for 40 proteomics, PTM or epi proteomics as well as single-cell proteomics and mass spec imaging, all on the various models of the timsTOF platform.
In 2022, the company made notable innovations within the BioSpin group. The segment reported strong growth in preclinical imaging and a notable contribution from the recently acquired Optimal Industrial Automation and Technologies.
The Potential of the PCI Market: Bruker offers advanced preclinical imaging (PCI) solutions for a broad spectrum of application fields, such as cancer research, functional and anatomical neuroimaging, orthopedics, cardiac imaging and stroke models.
Globally, the PCI market is expected to witness a CAGR of 3.8% by 2030. This suggests a possibility for the company to expand its presence in the market and generate higher profits from the division.
A Strong Q4 Performance: In the fourth quarter, Bruker reported better-than-expected figures. The top line was driven by robust performance across most geographies and operating segments.
The company’s Project Accelerate 2.0 comprised nearly 56% of the revenues. Despite inflationary pressure, the expansion of the quarter’s gross margin was driven by the company’s core operational excellence, driving volume leverage, pricing and currency tailwinds.
Downsides
A Competitive Market: Bruker has nearly 80% foothold in international markets, including the United States, Russia and certain European nations. Hence, the company is continuously exposed to currency fluctuations, resulting in transaction losses. Further, currency fluctuations could cause the price of Bruker’s products to be less competitive than those offered by its principal competitors.
Rising Costs: In the fourth quarter, SG&A expenses rose 7.4% to $164.7 million. Adjusted operating expenses increased 7.9% year over year, including a 9.3% year-over-year rise in R&D expenses. The company continues to be challenged by supply-chain disruptions and logistics delays, impacting business performance.
Orthofix Medical, carrying a Zacks Rank #2 (Buy) at present, has an estimated growth rate of 57.71% for the next year. Orthofix’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed the same in one, the average surprise being 140.02%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Orthofix Medical’s shares have decreased 49.5% compared with the industry’s 16.3% decline in the past year.
Viemed Healthcare, carrying a Zacks Rank #2 at present, has an estimated growth rate of 83.33% for 2024. Shares of VMD have surged 92.8% against the industry’s 38.5% decline over the past year.
In the last reported quarter, Viemed Healthcare’s earnings surpassed the Zacks Consensus Estimate by 25%, while revenues missed by 1.3%.
Insulet, carrying a Zacks Rank #2 at present, has an estimated growth rate of 56.59% for 2024. Insulet’s shares have risen 17.7% against the industry’s 38.5% decline over the past year.
PODD’s earnings surpassed estimates in three of the trailing four quarters and missed the same in one, the average surprise being 59.81%.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Bruker Corporation (BRKR) Hits 52-Week High: What's Driving It?
Shares of Bruker Corporation (BRKR - Free Report) reached a new 52-week high of $79.33 on Mar 31, before closing the session marginally lower at $78.84.
In the past year, this Zacks Rank #3 (Hold) stock has risen 21.4% against a 0.4% decline of the industry and the S&P 500 composite’s fall of 11.3%.
In the past five years, Bruker registered earnings growth of 12.9%, comparing favorably with the industry’s 8.5% rise. The company’s long-term expected growth rate of 22.3% is in line with the industry’s growth projection. Bruker’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and matched the same in one, the average surprise being 11.71%.
Bruker is witnessing an upward trend in its stock price, prompted by the strong demand for its high-value solutions and differentiated instruments. The optimism led by the solid fourth-quarter 2022 performance and a revenue and EPS growth outlook in 2023 are expected to contribute. However, rising costs and fiercely competitive markets are major downsides.
Let’s delve deeper.
Image Source: Zacks Investment Research
Key Growth Drivers
Segmental Prospects: In the fourth quarter of 2022, revenues from the BSI Nano group were particularly strong, as reported in semiconductor industrial markets. A well-rounded performance over the year, with strong bookings and backlog in the group’s microelectronics and semiconductor metrology tools, will potentially contribute to the segment’s growth.
CALID Group’s revenues increased in the high-single-digit percentage, with continued growth in the life science mass spectrometry business and strength in proteomics applications. The timsTOF platform, in particular, saw robust demand in applications for 40 proteomics, PTM or epi proteomics as well as single-cell proteomics and mass spec imaging, all on the various models of the timsTOF platform.
In 2022, the company made notable innovations within the BioSpin group. The segment reported strong growth in preclinical imaging and a notable contribution from the recently acquired Optimal Industrial Automation and Technologies.
The Potential of the PCI Market: Bruker offers advanced preclinical imaging (PCI) solutions for a broad spectrum of application fields, such as cancer research, functional and anatomical neuroimaging, orthopedics, cardiac imaging and stroke models.
Globally, the PCI market is expected to witness a CAGR of 3.8% by 2030. This suggests a possibility for the company to expand its presence in the market and generate higher profits from the division.
A Strong Q4 Performance: In the fourth quarter, Bruker reported better-than-expected figures. The top line was driven by robust performance across most geographies and operating segments.
The company’s Project Accelerate 2.0 comprised nearly 56% of the revenues. Despite inflationary pressure, the expansion of the quarter’s gross margin was driven by the company’s core operational excellence, driving volume leverage, pricing and currency tailwinds.
Downsides
A Competitive Market: Bruker has nearly 80% foothold in international markets, including the United States, Russia and certain European nations. Hence, the company is continuously exposed to currency fluctuations, resulting in transaction losses. Further, currency fluctuations could cause the price of Bruker’s products to be less competitive than those offered by its principal competitors.
Rising Costs: In the fourth quarter, SG&A expenses rose 7.4% to $164.7 million. Adjusted operating expenses increased 7.9% year over year, including a 9.3% year-over-year rise in R&D expenses. The company continues to be challenged by supply-chain disruptions and logistics delays, impacting business performance.
Key Picks
Some better-ranked stocks in the broader medical space are Orthofix Medical (OFIX - Free Report) , Viemed Healthcare (VMD - Free Report) and Insulet (PODD - Free Report) .
Orthofix Medical, carrying a Zacks Rank #2 (Buy) at present, has an estimated growth rate of 57.71% for the next year. Orthofix’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed the same in one, the average surprise being 140.02%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Orthofix Medical’s shares have decreased 49.5% compared with the industry’s 16.3% decline in the past year.
Viemed Healthcare, carrying a Zacks Rank #2 at present, has an estimated growth rate of 83.33% for 2024. Shares of VMD have surged 92.8% against the industry’s 38.5% decline over the past year.
In the last reported quarter, Viemed Healthcare’s earnings surpassed the Zacks Consensus Estimate by 25%, while revenues missed by 1.3%.
Insulet, carrying a Zacks Rank #2 at present, has an estimated growth rate of 56.59% for 2024. Insulet’s shares have risen 17.7% against the industry’s 38.5% decline over the past year.
PODD’s earnings surpassed estimates in three of the trailing four quarters and missed the same in one, the average surprise being 59.81%.