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) Gains From New Product Bookings Amid Competition
Read MoreHide Full Article
Bruker Corporation (BRKR - Free Report) is gaining strength across the BSI and BEST businesses. The ongoing rebound in businesses within the Nano Group seems encouraging. The company’s growing investments in Project Accelerate 2.0 initiatives are an added advantage. However, headwinds such as unfavorable economic conditions and competitive threats continue to be concerns. The stock currently carries a Zacks Rank #3 (Hold).
Bruker’s second-quarter 2022 earnings matched the Zacks Consensus Estimate. The top line was driven by robust performances across all geographies and the BSI and BEST businesses. The company delivered robust bookings and backlog growth in the second quarter. Revenue recognition from one gigahertz class NMR system and the continued uptake of the timsTOF platform seem promising. The company’s NANO advanced X-ray and NANO surfaces tools delivered strong growth in the quarter. The expansion in gross margin amid ongoing inflationary headwinds is an upside.
The BSI segment rose 2.9% year over year, including organic revenue growth of 8.1% in the second quarter. Organic bookings were up double digits percentages year over year, whereas the BSI book-to-bill ratio remained more than 1%. Geographically and on an organic basis, North American revenues rose in the high single-digit percentage. Meanwhile, the Asia Pacific delivered revenue growth in the low 20% range, whereas Europe registered revenue growth in a low single-digit percentage on a year-over-year basis.
In terms of product launches, in June 2022, Bruker released the NeuraLight 3D Ultra module to support advanced neuroscience and optogenetics research applications on its Ultima multiphoton microscopes. The NeuraLight 3D Ultra, when paired with the imaging capabilities of the Ultima 2Pplus microscope, enables researchers to examine behavior, perception and disease mechanisms at a larger scale and over a longer time period.
On the flip side, Bruker has underperformed in the industry it belongs to over the past year. The stock has declined 40.8% compared with the industry’s 31.7% fall. Bruker’s revenues for the second quarter of 2022 missed the consensus mark.
The sales decline in CALID business does not bode well. Escalating operating expenses are concerning. In the reported quarter, selling, general & administrative expenses rose 12.9%, whereas research and development expenses went up 6.8% year over year. This rise in operating expenses drove adjusted operating expenses by 11.1% year over year, leading to a 108 basis points contraction in adjusted operating margin.
Further, the company continues to be challenged by supply chain disruptions and logistics delays, impacting business performance.
Bruker also faces substantial competition in a consolidating industry and expects competition in all its markets to increase further . Bruker BioSpin competes with companies that offer magnetic resonance spectrometers, mainly JEOL and Oxford Instruments. In the field of preclinical imaging, Bruker BioSpin faces competition from Perkin Elmer, Mediso, Trifoil, MR Solutions, RS2D, Visualsonics (Fuji Film) and others.
Key Picks
Some better-ranked stocks in the broader medical space are AMN Healthcare Services, Inc. (AMN - Free Report) , ShockWave Medical, Inc. (SWAV - Free Report) and McKesson Corporation (MCK - Free Report) .
AMN Healthcare has a long-term earnings growth rate of 3.2%. The company surpassed earnings estimates in the trailing four quarters, delivering a surprise of 15.7%, on average. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
AMN Healthcare has outperformed its industry in the past year. AMN has lost 6.1% against the industry’s 37% fall.
ShockWave Medical, sporting a Zacks Rank #1 at present, has an estimated growth rate of 33.1% for 2023. The company’s earnings surpassed estimates in all the trailing four quarters, the average beat being 180.1%.
ShockWave Medical has outperformed its industry in the past year. SWAV has gained 35% against the industry’s 32.6% fall in the past year.
McKesson has an estimated long-term growth rate of 9.9%. The company surpassed earnings estimates in the trailing three quarters and missed in one, delivering a surprise of 13%, on average. It currently carries a Zacks Rank #2 (Buy).
McKesson has outperformed its industry in the past year. MCK has gained 71.1% against the industry’s 15.1% fall.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Bruker (BRKR) Gains From New Product Bookings Amid Competition
Bruker Corporation (BRKR - Free Report) is gaining strength across the BSI and BEST businesses. The ongoing rebound in businesses within the Nano Group seems encouraging. The company’s growing investments in Project Accelerate 2.0 initiatives are an added advantage. However, headwinds such as unfavorable economic conditions and competitive threats continue to be concerns. The stock currently carries a Zacks Rank #3 (Hold).
Bruker’s second-quarter 2022 earnings matched the Zacks Consensus Estimate. The top line was driven by robust performances across all geographies and the BSI and BEST businesses. The company delivered robust bookings and backlog growth in the second quarter. Revenue recognition from one gigahertz class NMR system and the continued uptake of the timsTOF platform seem promising. The company’s NANO advanced X-ray and NANO surfaces tools delivered strong growth in the quarter. The expansion in gross margin amid ongoing inflationary headwinds is an upside.
The BSI segment rose 2.9% year over year, including organic revenue growth of 8.1% in the second quarter. Organic bookings were up double digits percentages year over year, whereas the BSI book-to-bill ratio remained more than 1%. Geographically and on an organic basis, North American revenues rose in the high single-digit percentage. Meanwhile, the Asia Pacific delivered revenue growth in the low 20% range, whereas Europe registered revenue growth in a low single-digit percentage on a year-over-year basis.
Bruker Corporation Price
Bruker Corporation price | Bruker Corporation Quote
In terms of product launches, in June 2022, Bruker released the NeuraLight 3D Ultra module to support advanced neuroscience and optogenetics research applications on its Ultima multiphoton microscopes. The NeuraLight 3D Ultra, when paired with the imaging capabilities of the Ultima 2Pplus microscope, enables researchers to examine behavior, perception and disease mechanisms at a larger scale and over a longer time period.
On the flip side, Bruker has underperformed in the industry it belongs to over the past year. The stock has declined 40.8% compared with the industry’s 31.7% fall. Bruker’s revenues for the second quarter of 2022 missed the consensus mark.
The sales decline in CALID business does not bode well. Escalating operating expenses are concerning. In the reported quarter, selling, general & administrative expenses rose 12.9%, whereas research and development expenses went up 6.8% year over year. This rise in operating expenses drove adjusted operating expenses by 11.1% year over year, leading to a 108 basis points contraction in adjusted operating margin.
Further, the company continues to be challenged by supply chain disruptions and logistics delays, impacting business performance.
Bruker also faces substantial competition in a consolidating industry and expects competition in all its markets to increase further . Bruker BioSpin competes with companies that offer magnetic resonance spectrometers, mainly JEOL and Oxford Instruments. In the field of preclinical imaging, Bruker BioSpin faces competition from Perkin Elmer, Mediso, Trifoil, MR Solutions, RS2D, Visualsonics (Fuji Film) and others.
Key Picks
Some better-ranked stocks in the broader medical space are AMN Healthcare Services, Inc. (AMN - Free Report) , ShockWave Medical, Inc. (SWAV - Free Report) and McKesson Corporation (MCK - Free Report) .
AMN Healthcare has a long-term earnings growth rate of 3.2%. The company surpassed earnings estimates in the trailing four quarters, delivering a surprise of 15.7%, on average. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
AMN Healthcare has outperformed its industry in the past year. AMN has lost 6.1% against the industry’s 37% fall.
ShockWave Medical, sporting a Zacks Rank #1 at present, has an estimated growth rate of 33.1% for 2023. The company’s earnings surpassed estimates in all the trailing four quarters, the average beat being 180.1%.
ShockWave Medical has outperformed its industry in the past year. SWAV has gained 35% against the industry’s 32.6% fall in the past year.
McKesson has an estimated long-term growth rate of 9.9%. The company surpassed earnings estimates in the trailing three quarters and missed in one, delivering a surprise of 13%, on average. It currently carries a Zacks Rank #2 (Buy).
McKesson has outperformed its industry in the past year. MCK has gained 71.1% against the industry’s 15.1% fall.