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Bruker (BRKR) Q1 Earnings Surpass Estimates, Margins Up
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Bruker Corporation (BRKR - Free Report) delivered adjusted earnings per share (EPS) of 49 cents in the first quarter of 2022, reflecting a rise of 11.4% year over year. Moreover, the figure surpassed the Zacks Consensus Estimate by 19.5%.
The adjustments include expenses related to purchased intangible amortization, acquisition-related costs and restructuring costs, among others.
GAAP EPS for the quarter was 41 cents a share, reflecting a 10.% rise from the year-earlier figure.
Revenues in Detail
Bruker registered revenues of $595 million in the first quarter, up 7.3% year over year. However, the figure surpassed the Zacks Consensus Estimate by 3.9%.
Excluding the positive impact of 1% from acquisitions and another 4.2% from negative changes in foreign currency rates, the company saw organic revenue growth of 10.5%.
Solid performances by all the reporting segments driven by robust demand for the company’s solutions and products significantly drove the top line.
Geographically, the United States witnessed a 30.3% year-over-year rise in revenues in the reported quarter. Europe revenues fell 8.2% year over year, whereas revenues in the Asia Pacific increased 4.7%. Further, the Other category’s revenues climbed 39.4% 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 first quarter, BioSpin Group revenues fell 1% from the year-ago quarter to $157.8 million. However, BioSpin saw robust growth in revenues in the preclinical imaging business and BioSpin achieved double-digit bookings growth.
CALID revenues rose 5.6% year over year to $202.2 million in the first quarter, primarily resulting from the strong growth in microbiology and molecular spectroscopy. The company’s timsTOF platform continues to witness strong adoption in 4D proteomics, epiproteomics and multiomics.
Revenues in the Nano group climbed 15.6% to $178.5 million. Revenues for the company’s NANO advanced X-ray and NANO surfaces tools delivered strong growth in the quarter, and NANO's microelectronics and semicon metrology tools performed well with strong bookings and backlog.
Bruker Corporation Price, Consensus and EPS Surprise
The BSI segment (including BSI Life Science and BSI Nano Segments) improved 6.6% year over year, including organic revenue growth of 9.5%.
In the first quarter, the company’s BEST segment revenues were $59.7 million, up 13.9% year over year. The solid segmental performance was driven by share gains and strong superconductor demand by MRI OEM customers. Despite healthy superconductor demand, this segment experienced supply-chain challenges due to material shortage and flow logistics.
Organically, BEST segment revenues improved 21%, net of intercompany eliminations.
Margin Trend
In the quarter under review, Bruker’s gross profit rose 9.9% to $306.3 million. Gross margin expanded 124 basis points (bps) to 51.5%.
Meanwhile, selling, general & administrative expenses rose 10.5% to $145.7 million. Research and development expenses went up 3.7% year over year to $56.6 million. Adjusted operating expenses of $202.3 million increased 8.4% year over year.
Adjusted operating profit totaled $104 million, reflecting a 12.9% rise from the prior-year quarter. Further, adjusted operating margin in the third quarter expanded 88 bps to 17.5%.
Financial Position
Bruker exited the first quarter of 2022 with cash and cash equivalents, and short-term investments of $916.1 million compared with $1.17 billion at the end of fourth-quarter 2021. Total long-term debt (including current portion) at the end of the first quarter of 2022 was $1.21 billion compared with $1.22 billion at the end of fourth-quarter 2021.
Cumulative net cash flow from operating activities at the end of the first quarter was $77.8 million compared with $98 million a year ago.
The company has a five-year annualized dividend growth rate of 1.28%.
2022 Guidance
Bruker raised its financial outlook for 2022 organic revenue growth, considering the strong demand for its high-performance life science tools, scientific instruments, and diagnostic solutions.
The company now expects organic revenue growth of approximately 7.9%. This compares with the previously guided organic revenue growth of 6-8%. The Zacks Consensus Estimate for revenues is pegged at $2.56 billion.
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 $2.31.
Our Take
Bruker ended the first quarter of 2022 on a bullish note with better-than-expected earnings and revenues. Strong performance across all geographies buoys optimism. Revenue growth across the BSI and BEST businesses drove the top line in the reported quarter. The company’s timsTOF platform continues to witness strong adoption in 4D proteomics, epiproteomics and multiomics. Meanwhile, revenues for the company’s NANO advanced X-ray and NANO surfaces tools delivered strong growth in the quarter. The company’s raised organic revenue growth outlook for 2022 indicates that this growth momentum will continue. However, the rise in operating costs is concerning. Further, supply-chain challenges in the BEST segment are other downsides.
Zacks Rank and Key Picks
Bruker currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are UnitedHealth Group Incorporated (UNH - Free Report) , Medpace Holdings, Inc. (MEDP - Free Report) and Alkermes plc (ALKS - Free Report) .
UnitedHealth, having a Zacks Rank #2 (Buy), reported first-quarter 2022 adjusted EPS of $5.49, which beat the Zacks Consensus Estimate by 1.7%. Revenues of $80.1 billion outpaced the consensus mark by 14.2%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
UnitedHealth has an estimated long-term growth rate of 14.8%. UNH’s earnings surpassed estimates in the trailing four quarters, the average surprise being 3.7%.
Medpace reported first-quarter 2022 adjusted EPS of $1.69, which surpassed the Zacks Consensus Estimate by 34.1%. Revenues of $330.9 million outpaced the Zacks Consensus Estimate by 1.1%. It currently has a Zacks Rank #2.
Medpace has a historical growth rate of 27.3%. MEDP’s earnings surpassed estimates in the trailing four quarters, the average surprise being 17.1%.
Alkermes reported first-quarter 2022 adjusted EPS of 12 cents, which surpassed the Zacks Consensus Estimate of a penny. Revenues of $278.6 million outpaced the Zacks Consensus Estimate by 6.2%. It currently sports a Zacks Rank #1.
Alkermes has an estimated long-term growth rate of 25.1%. ALKS’ earnings surpassed estimates in the trailing four quarters, the average surprise being 350.5%.
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Bruker (BRKR) Q1 Earnings Surpass Estimates, Margins Up
Bruker Corporation (BRKR - Free Report) delivered adjusted earnings per share (EPS) of 49 cents in the first quarter of 2022, reflecting a rise of 11.4% year over year. Moreover, the figure surpassed the Zacks Consensus Estimate by 19.5%.
The adjustments include expenses related to purchased intangible amortization, acquisition-related costs and restructuring costs, among others.
GAAP EPS for the quarter was 41 cents a share, reflecting a 10.% rise from the year-earlier figure.
Revenues in Detail
Bruker registered revenues of $595 million in the first quarter, up 7.3% year over year. However, the figure surpassed the Zacks Consensus Estimate by 3.9%.
Excluding the positive impact of 1% from acquisitions and another 4.2% from negative changes in foreign currency rates, the company saw organic revenue growth of 10.5%.
Solid performances by all the reporting segments driven by robust demand for the company’s solutions and products significantly drove the top line.
Geographically, the United States witnessed a 30.3% year-over-year rise in revenues in the reported quarter. Europe revenues fell 8.2% year over year, whereas revenues in the Asia Pacific increased 4.7%. Further, the Other category’s revenues climbed 39.4% 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 first quarter, BioSpin Group revenues fell 1% from the year-ago quarter to $157.8 million. However, BioSpin saw robust growth in revenues in the preclinical imaging business and BioSpin achieved double-digit bookings growth.
CALID revenues rose 5.6% year over year to $202.2 million in the first quarter, primarily resulting from the strong growth in microbiology and molecular spectroscopy. The company’s timsTOF platform continues to witness strong adoption in 4D proteomics, epiproteomics and multiomics.
Revenues in the Nano group climbed 15.6% to $178.5 million. Revenues for the company’s NANO advanced X-ray and NANO surfaces tools delivered strong growth in the quarter, and NANO's microelectronics and semicon metrology tools performed well with strong bookings and backlog.
Bruker Corporation Price, Consensus and EPS Surprise
The BSI segment (including BSI Life Science and BSI Nano Segments) improved 6.6% year over year, including organic revenue growth of 9.5%.
In the first quarter, the company’s BEST segment revenues were $59.7 million, up 13.9% year over year. The solid segmental performance was driven by share gains and strong superconductor demand by MRI OEM customers. Despite healthy superconductor demand, this segment experienced supply-chain challenges due to material shortage and flow logistics.
Organically, BEST segment revenues improved 21%, net of intercompany eliminations.
Margin Trend
In the quarter under review, Bruker’s gross profit rose 9.9% to $306.3 million. Gross margin expanded 124 basis points (bps) to 51.5%.
Meanwhile, selling, general & administrative expenses rose 10.5% to $145.7 million. Research and development expenses went up 3.7% year over year to $56.6 million. Adjusted operating expenses of $202.3 million increased 8.4% year over year.
Adjusted operating profit totaled $104 million, reflecting a 12.9% rise from the prior-year quarter. Further, adjusted operating margin in the third quarter expanded 88 bps to 17.5%.
Financial Position
Bruker exited the first quarter of 2022 with cash and cash equivalents, and short-term investments of $916.1 million compared with $1.17 billion at the end of fourth-quarter 2021. Total long-term debt (including current portion) at the end of the first quarter of 2022 was $1.21 billion compared with $1.22 billion at the end of fourth-quarter 2021.
Cumulative net cash flow from operating activities at the end of the first quarter was $77.8 million compared with $98 million a year ago.
The company has a five-year annualized dividend growth rate of 1.28%.
2022 Guidance
Bruker raised its financial outlook for 2022 organic revenue growth, considering the strong demand for its high-performance life science tools, scientific instruments, and diagnostic solutions.
The company now expects organic revenue growth of approximately 7.9%. This compares with the previously guided organic revenue growth of 6-8%. The Zacks Consensus Estimate for revenues is pegged at $2.56 billion.
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 $2.31.
Our Take
Bruker ended the first quarter of 2022 on a bullish note with better-than-expected earnings and revenues. Strong performance across all geographies buoys optimism. Revenue growth across the BSI and BEST businesses drove the top line in the reported quarter. The company’s timsTOF platform continues to witness strong adoption in 4D proteomics, epiproteomics and multiomics. Meanwhile, revenues for the company’s NANO advanced X-ray and NANO surfaces tools delivered strong growth in the quarter. The company’s raised organic revenue growth outlook for 2022 indicates that this growth momentum will continue. However, the rise in operating costs is concerning. Further, supply-chain challenges in the BEST segment are other downsides.
Zacks Rank and Key Picks
Bruker currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are UnitedHealth Group Incorporated (UNH - Free Report) , Medpace Holdings, Inc. (MEDP - Free Report) and Alkermes plc (ALKS - Free Report) .
UnitedHealth, having a Zacks Rank #2 (Buy), reported first-quarter 2022 adjusted EPS of $5.49, which beat the Zacks Consensus Estimate by 1.7%. Revenues of $80.1 billion outpaced the consensus mark by 14.2%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
UnitedHealth has an estimated long-term growth rate of 14.8%. UNH’s earnings surpassed estimates in the trailing four quarters, the average surprise being 3.7%.
Medpace reported first-quarter 2022 adjusted EPS of $1.69, which surpassed the Zacks Consensus Estimate by 34.1%. Revenues of $330.9 million outpaced the Zacks Consensus Estimate by 1.1%. It currently has a Zacks Rank #2.
Medpace has a historical growth rate of 27.3%. MEDP’s earnings surpassed estimates in the trailing four quarters, the average surprise being 17.1%.
Alkermes reported first-quarter 2022 adjusted EPS of 12 cents, which surpassed the Zacks Consensus Estimate of a penny. Revenues of $278.6 million outpaced the Zacks Consensus Estimate by 6.2%. It currently sports a Zacks Rank #1.
Alkermes has an estimated long-term growth rate of 25.1%. ALKS’ earnings surpassed estimates in the trailing four quarters, the average surprise being 350.5%.