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Bruker (BRKR) Q1 Earnings Surpass Estimates, Margins Rise
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Bruker Corporation (BRKR - Free Report) delivered adjusted earnings per share (EPS) of 44 cents in the first quarter of 2021, skyrocketing 214.3% year over year. Moreover, the figure surpassed the Zacks Consensus Estimate by 37.5%.
The adjustments include expenses related to purchased intangible amortization, acquisition-related costs and restructuring costs among others.
GAAP EPS for the quarter was 37 cents a share, reflecting a huge 428.6% surge from the year-earlier figure.
Revenues in Detail
Bruker registered revenues of $554.7 million in the first quarter, up 30.8% year over year. However, the figure surpassed the Zacks Consensus Estimate by 8.9%.
Excluding the positive impact of 0.8% from acquisitions and another 6.2% from favorable changes in foreign currency rates, the company saw organic revenue growth of 23.8%.
Robust performances by all the reporting segments across geographies significantly drove the first-quarter top line.
Bruker Corporation Price, Consensus and EPS Surprise
Geographically, the United States witnessed an 8.8% rise in revenues in the reported quarter. The Other category’s revenues climbed 8.6%. Further, Europe revenues rose 51.8% year over year whereas revenues in the Asia Pacific inched up 31.6%.
Segments in Detail
Bruker reports results under three segments, namely BSI Life Science (comprising BioSpin and CALID), BSI Nano and BEST.
In the first quarter, BioSpin Group revenues improved 31.8% from the year-ago quarter to $159.4 million on the back of restored customer demand and instrument deliveries. Also, the business was boosted by strong BioSpin systems revenues, including customer adoption of the company’s two GHz-class systems and growth of aftermarket and software revenues.
CALID revenues were up 36.9% year over year to $192.4 million, primarily resulting from strong demand for the life science mass spectrometry and molecular spectroscopy businesses. Continued robust growth in the timsTOF 4D proteomics business along with recovery in the broader mass spectrometry business also drove the top line.
Total BSI Life Science revenues were $351.8 million, up 34.6% year over year.
Revenues in the Nano group climbed 28.6% to $154.4 million on continued robust demand for microelectronics and semiconductor metrology along with significant rebound in the segment’s industrial research and academic businesses. Also, solid order growth in the Fluorescence Microscopy business pushed up the segmental revenues.
Organic revenues and revenues at constant exchange rate or CER at the BSI segment (including BSI Life Science and BSI Nano Segments) increased 25.6% and 32.7% year over year, respectively.
In the first quarter, the company’s BEST segment revenues were $52.4 million, up13.4% year over year, resulting from recovery in demand for superconductors by MRI companies.
Organically, BEST segment revenues improved 7.1% year over year, net of intercompany eliminations. At CER, the segment revenues climbed 14.1%.
Margin Trend
In the quarter under review, Bruker’s gross profit rose 44.9% to $278.7 million. Gross margin expanded 489 basis points (bps) to 50.2%.
Meanwhile, selling, general & administrative expenses rose 8.7% to $131.8 million. Research and development expenses went up 12.9% year over year to $54.8 million. Adjusted operating expenses of $186.6 million increased 9.9% year over year.
Adjusted operating profit totaled $92.1 million, reflecting a 307.5% surge from the prior-year quarter. Further, adjusted operating margin in the first quarter expanded a huge 1127 bps to 16.6%.
Financial Position
Bruker exited the first quarter of 2021 with cash and cash equivalents, and short-term investments of $746.8 million compared with $731.8 million at the end of 2020. Long-term debt (including current portion) at the end of the first quarter of 2021 was $824.2 million compared with $844.5 million at the end of 2020.
Net cash flow from operating activities at the end of the first quarter was $98 million compared with $35 million a year ago.
2021 Guidance
Bruker, boosted by its strong performances, raised its 2021 outlook.
For 2021, Bruker expects revenue growth of approximately 14-16%, up from the previously issued guidance of 11-13%. Organic revenue growth is projected within 11-13%, up from the earlier guided range of 7-9%.
The company expects full-year adjusted EPS in the band of $1.82-$1.87, indicating an uptick of 35-39% from the 2020 reported figure (up from the previous expectation of $1.72-$1.77, which called for a 27-31% increase from the year-ago reported figure). The Zacks Consensus Estimate for the same is pegged at $1.77.
Our Take
Bruker ended the first quarter of 2021 with better-than-expected results. Revenue growth across all of its segments and geographies look impressive. Robust acceptance of the company’s GHz-class systems bode well. Strength in the company’s microbiology and molecular diagnostics revenues is also encouraging. Launch of Bruker’s Next generation, high-performance 80 MHz Fourier Transform Nuclear Magnetic Resonance (FT-NMR) benchtop spectrometer in the United States is appreciative too. Expansion of both margins is another boon. The company’s current-year financial outlook with strong growth expectations over 2020 buoys optimism on the stock.
However, a sequential fall in Bruker’s SARS-CoV-2 testing revenues is worrying.
Zacks Rank and Other Key Picks
Bruker currently carries a Zacks Rank #2 (Buy).
A few other top-ranked stocks in the broader medical space are Boston Scientific Corporation (BSX - Free Report) , CONMED Corporation (CNMD - Free Report) and Globus Medical, Inc. (GMED - Free Report) .
Boston Scientific reported first-quarter 2021 adjusted EPS of 37 cents, beating the Zacks Consensus Estimate by 23.3%. Net revenues of $2.75 billion outpaced the consensus estimate by 5.3%. It currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
CONMED, a Zacks Rank #2 company, reported first-quarter 2021 adjusted EPS of 63 cents, beating the Zacks Consensus Estimate by 46.5%. Revenues of $232.7 million outpaced the consensus mark by 7%.
Globus Medical reported first-quarter 2021 adjusted EPS of 49 cents, surpassing the Zacks Consensus Estimate by 36.1%. Net revenues of $227.3 million exceeded the Zacks Consensus Estimate by 15%. It currently carries a Zacks Rank #2.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
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Bruker (BRKR) Q1 Earnings Surpass Estimates, Margins Rise
Bruker Corporation (BRKR - Free Report) delivered adjusted earnings per share (EPS) of 44 cents in the first quarter of 2021, skyrocketing 214.3% year over year. Moreover, the figure surpassed the Zacks Consensus Estimate by 37.5%.
The adjustments include expenses related to purchased intangible amortization, acquisition-related costs and restructuring costs among others.
GAAP EPS for the quarter was 37 cents a share, reflecting a huge 428.6% surge from the year-earlier figure.
Revenues in Detail
Bruker registered revenues of $554.7 million in the first quarter, up 30.8% year over year. However, the figure surpassed the Zacks Consensus Estimate by 8.9%.
Excluding the positive impact of 0.8% from acquisitions and another 6.2% from favorable changes in foreign currency rates, the company saw organic revenue growth of 23.8%.
Robust performances by all the reporting segments across geographies significantly drove the first-quarter top line.
Bruker Corporation Price, Consensus and EPS Surprise
Bruker Corporation price-consensus-eps-surprise-chart | Bruker Corporation Quote
Geographically, the United States witnessed an 8.8% rise in revenues in the reported quarter. The Other category’s revenues climbed 8.6%. Further, Europe revenues rose 51.8% year over year whereas revenues in the Asia Pacific inched up 31.6%.
Segments in Detail
Bruker reports results under three segments, namely BSI Life Science (comprising BioSpin and CALID), BSI Nano and BEST.
In the first quarter, BioSpin Group revenues improved 31.8% from the year-ago quarter to $159.4 million on the back of restored customer demand and instrument deliveries. Also, the business was boosted by strong BioSpin systems revenues, including customer adoption of the company’s two GHz-class systems and growth of aftermarket and software revenues.
CALID revenues were up 36.9% year over year to $192.4 million, primarily resulting from strong demand for the life science mass spectrometry and molecular spectroscopy businesses. Continued robust growth in the timsTOF 4D proteomics business along with recovery in the broader mass spectrometry business also drove the top line.
Total BSI Life Science revenues were $351.8 million, up 34.6% year over year.
Revenues in the Nano group climbed 28.6% to $154.4 million on continued robust demand for microelectronics and semiconductor metrology along with significant rebound in the segment’s industrial research and academic businesses. Also, solid order growth in the Fluorescence Microscopy business pushed up the segmental revenues.
Organic revenues and revenues at constant exchange rate or CER at the BSI segment (including BSI Life Science and BSI Nano Segments) increased 25.6% and 32.7% year over year, respectively.
In the first quarter, the company’s BEST segment revenues were $52.4 million, up13.4% year over year, resulting from recovery in demand for superconductors by MRI companies.
Organically, BEST segment revenues improved 7.1% year over year, net of intercompany eliminations. At CER, the segment revenues climbed 14.1%.
Margin Trend
In the quarter under review, Bruker’s gross profit rose 44.9% to $278.7 million. Gross margin expanded 489 basis points (bps) to 50.2%.
Meanwhile, selling, general & administrative expenses rose 8.7% to $131.8 million. Research and development expenses went up 12.9% year over year to $54.8 million. Adjusted operating expenses of $186.6 million increased 9.9% year over year.
Adjusted operating profit totaled $92.1 million, reflecting a 307.5% surge from the prior-year quarter. Further, adjusted operating margin in the first quarter expanded a huge 1127 bps to 16.6%.
Financial Position
Bruker exited the first quarter of 2021 with cash and cash equivalents, and short-term investments of $746.8 million compared with $731.8 million at the end of 2020. Long-term debt (including current portion) at the end of the first quarter of 2021 was $824.2 million compared with $844.5 million at the end of 2020.
Net cash flow from operating activities at the end of the first quarter was $98 million compared with $35 million a year ago.
2021 Guidance
Bruker, boosted by its strong performances, raised its 2021 outlook.
For 2021, Bruker expects revenue growth of approximately 14-16%, up from the previously issued guidance of 11-13%. Organic revenue growth is projected within 11-13%, up from the earlier guided range of 7-9%.
The company expects full-year adjusted EPS in the band of $1.82-$1.87, indicating an uptick of 35-39% from the 2020 reported figure (up from the previous expectation of $1.72-$1.77, which called for a 27-31% increase from the year-ago reported figure). The Zacks Consensus Estimate for the same is pegged at $1.77.
Our Take
Bruker ended the first quarter of 2021 with better-than-expected results. Revenue growth across all of its segments and geographies look impressive. Robust acceptance of the company’s GHz-class systems bode well. Strength in the company’s microbiology and molecular diagnostics revenues is also encouraging. Launch of Bruker’s Next generation, high-performance 80 MHz Fourier Transform Nuclear Magnetic Resonance (FT-NMR) benchtop spectrometer in the United States is appreciative too. Expansion of both margins is another boon. The company’s current-year financial outlook with strong growth expectations over 2020 buoys optimism on the stock.
However, a sequential fall in Bruker’s SARS-CoV-2 testing revenues is worrying.
Zacks Rank and Other Key Picks
Bruker currently carries a Zacks Rank #2 (Buy).
A few other top-ranked stocks in the broader medical space are Boston Scientific Corporation (BSX - Free Report) , CONMED Corporation (CNMD - Free Report) and Globus Medical, Inc. (GMED - Free Report) .
Boston Scientific reported first-quarter 2021 adjusted EPS of 37 cents, beating the Zacks Consensus Estimate by 23.3%. Net revenues of $2.75 billion outpaced the consensus estimate by 5.3%. It currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
CONMED, a Zacks Rank #2 company, reported first-quarter 2021 adjusted EPS of 63 cents, beating the Zacks Consensus Estimate by 46.5%. Revenues of $232.7 million outpaced the consensus mark by 7%.
Globus Medical reported first-quarter 2021 adjusted EPS of 49 cents, surpassing the Zacks Consensus Estimate by 36.1%. Net revenues of $227.3 million exceeded the Zacks Consensus Estimate by 15%. It currently carries a Zacks Rank #2.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2021 today >>