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 (BRKR) Q1 Earnings Beat Estimates, Guidance Upbeat
Read MoreHide Full Article
Bruker Corporation (BRKR - Free Report) delivered adjusted earnings per share (EPS) of 28 cents in the first quarter of 2019, up 16.7% from the year-ago figure as well as the Zacks Consensus Estimate.
On a reported basis, earnings were 20 cents a share compared with the year-earlier figure of 17 cents.
Revenues in Detail
Bruker registered revenues of $461.4 million in the first quarter, up 6.9% year over year. The top line also surpassed the Zacks Consensus Estimate by 1.4%.
Excluding a positive effect of 6% from acquisitions and a 4.6% negative impact from changes in foreign currency rates, Bruker generated higher organic revenues of 5.5% year over year.
Bruker Corporation Price, Consensus and EPS Surprise
The company’s organic revenue growth was driven by strength in Bruker Scientific Instruments (BSI) and BEST segments.
Geographically, the United States saw 12.2% growth in the reported quarter. Meanwhile, European revenues dipped 3.9% year over year. Also, Asia Pacific revenues slipped 19.9%. In Other category, revenues declined 5.4%.
Bruker’s BioSpin Group revenues slid 3% below the year-ago quarter’s level as during this period, some orders and installations were shifted to future periods. Revenues in the NANO group rose 13.6%, fueled by a strong uptrend in the academic research and industrial research markets. CALID revenues were up 12.9% year over year.
Margin Trend
Gross margin in the quarter under review expanded 34 basis points (bps) to 46.5%. While selling, general & administrative expenses climbed 8.9% to $120.1 million. Research and development expenses went up 7.4% year over year to $46.4 million. Overall, adjusted operating margin contracted 19 bps to 10.4%.
Financial Position
Bruker exited the first quarter of 2019 with cash and cash equivalents of $298.8 million, down from $322.4 million at the end of 2018. Year-to-date operating cash flow was $14.2 million in comparison to $43.8 million in the year-ago period.
2019 Guidance
Bruker has raised its 2019 outlook. For the full year, the company currently projects approximately 7-8% revenue growth (earlier forecast was 6-7% increase) including nearly 4.5-5.5% organic revenue rise (past expectation was 4-5% rise) and an estimated 2.5% headwind (previous prediction was 2%) from adverse foreign currency translation. The company envisions a year-over-year expansion of 90-120 bps (earlier view was 70-100 bps) in adjusted operating margin.
For 2019, Bruker anticipates its adjusted EPS view in the range of $1.57-$1.61 (earlier band was $1.54-$1.58), up 12-15% from the prior-year’s figure. The Zacks Consensus Estimate of $1.60 remains within this guided range.
Our Take
Bruker ended the first quarter on a positive note with both earnings and revenues staying ahead of the consensus mark. A strong year-over-year uptrend in organic revenues was encouraging. Additionally, this improvement in gross and operating margins buoys optimism on the stock. The company’s strategic acquisition activity has also been impressive. Further, we are upbeat about its current focus on product development through higher R&D investment.
On the flip side, a competitive landscape and macroeconomic woes pose persistent challenges to the company.
Stryker delivered first-quarter 2019 adjusted EPS of $1.88, beating the Zacks Consensus Estimate by 2.2%. Meanwhile, revenues of $3.52 billion came in line with the consensus estimate.
Abbott reported first-quarter 2019 adjusted EPS of 63 cents, topping the Zacks Consensus Estimate by 3.3%. Moreover, worldwide sales of $7.54 billion trumped the consensus estimate of $7.47 billion.
CONMED posted first-quarter 2019 adjusted EPS of 57 cents, which exceeded the Zacks Consensus Estimate of 54 cents. Also, revenues of $218.4 million outpaced the consensus mark of $213 million.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +98%, +119% and +164% in as little as 1 month. The stocks in this report could perform even better.
Image: Bigstock
Bruker (BRKR) Q1 Earnings Beat Estimates, Guidance Upbeat
Bruker Corporation (BRKR - Free Report) delivered adjusted earnings per share (EPS) of 28 cents in the first quarter of 2019, up 16.7% from the year-ago figure as well as the Zacks Consensus Estimate.
On a reported basis, earnings were 20 cents a share compared with the year-earlier figure of 17 cents.
Revenues in Detail
Bruker registered revenues of $461.4 million in the first quarter, up 6.9% year over year. The top line also surpassed the Zacks Consensus Estimate by 1.4%.
Excluding a positive effect of 6% from acquisitions and a 4.6% negative impact from changes in foreign currency rates, Bruker generated higher organic revenues of 5.5% year over year.
Bruker Corporation Price, Consensus and EPS Surprise
Bruker Corporation Price, Consensus and EPS Surprise | Bruker Corporation Quote
The company’s organic revenue growth was driven by strength in Bruker Scientific Instruments (BSI) and BEST segments.
Geographically, the United States saw 12.2% growth in the reported quarter. Meanwhile, European revenues dipped 3.9% year over year. Also, Asia Pacific revenues slipped 19.9%. In Other category, revenues declined 5.4%.
Bruker’s BioSpin Group revenues slid 3% below the year-ago quarter’s level as during this period, some orders and installations were shifted to future periods. Revenues in the NANO group rose 13.6%, fueled by a strong uptrend in the academic research and industrial research markets. CALID revenues were up 12.9% year over year.
Margin Trend
Gross margin in the quarter under review expanded 34 basis points (bps) to 46.5%. While selling, general & administrative expenses climbed 8.9% to $120.1 million. Research and development expenses went up 7.4% year over year to $46.4 million. Overall, adjusted operating margin contracted 19 bps to 10.4%.
Financial Position
Bruker exited the first quarter of 2019 with cash and cash equivalents of $298.8 million, down from $322.4 million at the end of 2018. Year-to-date operating cash flow was $14.2 million in comparison to $43.8 million in the year-ago period.
2019 Guidance
Bruker has raised its 2019 outlook. For the full year, the company currently projects approximately 7-8% revenue growth (earlier forecast was 6-7% increase) including nearly 4.5-5.5% organic revenue rise (past expectation was 4-5% rise) and an estimated 2.5% headwind (previous prediction was 2%) from adverse foreign currency translation. The company envisions a year-over-year expansion of 90-120 bps (earlier view was 70-100 bps) in adjusted operating margin.
For 2019, Bruker anticipates its adjusted EPS view in the range of $1.57-$1.61 (earlier band was $1.54-$1.58), up 12-15% from the prior-year’s figure. The Zacks Consensus Estimate of $1.60 remains within this guided range.
Our Take
Bruker ended the first quarter on a positive note with both earnings and revenues staying ahead of the consensus mark. A strong year-over-year uptrend in organic revenues was encouraging. Additionally, this improvement in gross and operating margins buoys optimism on the stock. The company’s strategic acquisition activity has also been impressive. Further, we are upbeat about its current focus on product development through higher R&D investment.
On the flip side, a competitive landscape and macroeconomic woes pose persistent challenges to the company.
Zacks Rank & Other Key Picks
Bruker carries a Zacks Rank #2 (Buy). A few other top-ranked medical stocks flaunting solid results this earnings season are Stryker Corp. (SYK - Free Report) , Abbott Laboratories (ABT - Free Report) and CONMED Corp. (CNMD - Free Report) , each carrying a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stryker delivered first-quarter 2019 adjusted EPS of $1.88, beating the Zacks Consensus Estimate by 2.2%. Meanwhile, revenues of $3.52 billion came in line with the consensus estimate.
Abbott reported first-quarter 2019 adjusted EPS of 63 cents, topping the Zacks Consensus Estimate by 3.3%. Moreover, worldwide sales of $7.54 billion trumped the consensus estimate of $7.47 billion.
CONMED posted first-quarter 2019 adjusted EPS of 57 cents, which exceeded the Zacks Consensus Estimate of 54 cents. Also, revenues of $218.4 million outpaced the consensus mark of $213 million.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +98%, +119% and +164% in as little as 1 month. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>