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) Q3 Earnings Beat Estimates, '22 Sales View Down
Read MoreHide Full Article
Bruker Corporation (BRKR - Free Report) delivered adjusted earnings per share (EPS) of 66 cents in the third quarter of 2022, up 4.8% year over year. Moreover, the figure exceeded the Zacks Consensus Estimate by 24.5%.
The adjustments include expenses related to purchased intangible amortization, acquisition-related costs and restructuring costs, among others.
GAAP EPS for the quarter was 59 cents a share, reflecting a 3.5% rise from the year-earlier figure.
Revenues in Detail
Bruker registered revenues of $638.9 million in the third quarter, up 4.9% year over year. The figure topped the Zacks Consensus Estimate by 4.1%.
Excluding the positive impact of 1.2% from acquisitions and a 9% impact from negative changes in foreign currency rates, the company witnessed organic revenue growth of 12.7%.
Bruker Corporation Price, Consensus and EPS Surprise
Geographically, the United States witnessed a 17.5% year-over-year rise in revenues in the reported quarter. Europe revenues fell 3.5% year over year, whereas revenues in the Asia Pacific increased 2.7%. Further, the Other category’s revenues moved up 8.3% 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 third quarter, BioSpin Group’s revenues fell 5.8% from the year-ago quarter to $175.7 million due to a difficult comparison in the third quarter of 2021 that registered over 20% growth.
CALID’s revenues rose 6.8% year over year to $207.5 million in the third quarter.CALID’s organic revenue grew in the mid-teens, driven by strong growth in both the Life Science Mass Spectrometry and Optics businesses.
Revenues of the Nano group climbed 13.8% to $199.1 million. Nano’s organic revenues grew in the low 20% range, driven by the strength in Nano's semiconductor and industrial businesses.
In the third quarter, the company’s Bruker Energy & Supercon Technologies’ (BEST) revenues were $59.3 million, up 4% year over year.
Margin Trend
In the quarter under review, Bruker’s gross profit rose 8.6% to $335.3 million. The gross margin expanded 178 basis points (bps) to 52.5%.
Meanwhile, selling, general & administrative expenses rose 2.5% to $144.8 million. Research and development expenses went up 7.8% year over year to $56.2 million. Adjusted operating expenses of $201 million increased 3.9% year over year.
Adjusted operating profit totaled $134.3 million, reflecting a 16.5% rise from the prior-year quarter. Further, the adjusted operating margin in the third quarter contracted 208 bps to 21%.
Financial Position
Bruker exited third-quarter 2022 with cash and cash equivalents and short-term investments of $626.2 million compared with $723 million at the end of second-quarter 2022. Total long-term debt (including the current portion) at the end of third-quarter 2022 was $1.15 billion compared with $1.19 billion at the end of second-quarter 2022.
Cumulative net cash flow from operating activities at the end of the third quarter was $102.9 million compared with $143.8 million in the year-ago period.
2022 Guidance
Bruker updated its revenue outlook for 2022 to account for stronger foreign currency translation headwinds.
The company expects revenue growth of approximately 1.5-3.5%, down from the earlier-announced revenue guidance of 2.5-4.5%. The Zacks Consensus Estimate for revenues is pegged at $2.52 billion. The company raised its organic revenue growth outlook to the band of 8-10% from its earlier guidance of 7-9%.
The company maintained its full-year adjusted EPS guidance 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 $2.30.
Our Take
Bruker ended the third quarter of 2022 with earnings and revenues beating the Zacks Consensus Estimate. The top line was driven by robust performance across most of the geographies and operating segments. Despite operational headwinds from lingering supply chain and logistic delays, lockdowns in China and the conflict in Europe, the company registered a strong demand for differentiated high-value scientific instruments and life science solutions. The third-quarter 2022 Scientific Instruments segment’s book-to-bill ratio was greater than 1, following a weaker Q2.
However, the decline in the BioSpin business does not bode well. Mounting operating costs are added concerns. The company continues to be challenged by supply chain disruptions and logistics delays, impacting business performance. The reduced reported-revenue growth guidance for 2022 is a major downside.
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 AMN Healthcare Services, Inc. (AMN - Free Report) , Medpace Holdings, Inc. (MEDP - Free Report) and Merit Medical Systems, Inc. (MMSI - Free Report) .
AMN Healthcare, carrying a Zacks Rank #2 (Buy), reported third-quarter 2022 adjusted EPS of $2.57, which beat the Zacks Consensus Estimate by 10.3%. Revenues of $1.14 billion outpaced the consensus mark by 3.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AMN Healthcare has an estimated long-term growth rate of 3.2%. AMN’s earnings surpassed estimates in all the trailing four quarters, the average being 10.9%.
Medpace Holdings, sporting a Zacks Rank #1, reported third-quarter 2022 EPS of $2.05, which beat the Zacks Consensus Estimate by 39.5%. Revenues of $383.7 million outpaced the consensus mark by 8.1%.
Medpace Holdings has an estimated growth rate of 44.9% for the full-year 2022. MEDP’s earnings surpassed estimates in all the trailing four quarters, the average being 22%.
Merit Medical, carrying a Zacks Rank #2, reported third-quarter 2022 adjusted EPS of 64 cents, which beat the Zacks Consensus Estimate by 20.8%. Revenues of $287.2 million outpaced the consensus mark by 5.2%.
Merit Medical has an estimated long-term growth rate of 11%. MMSI’s earnings surpassed estimates in all the trailing four quarters, the average being 25.4%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Bruker (BRKR) Q3 Earnings Beat Estimates, '22 Sales View Down
Bruker Corporation (BRKR - Free Report) delivered adjusted earnings per share (EPS) of 66 cents in the third quarter of 2022, up 4.8% year over year. Moreover, the figure exceeded the Zacks Consensus Estimate by 24.5%.
The adjustments include expenses related to purchased intangible amortization, acquisition-related costs and restructuring costs, among others.
GAAP EPS for the quarter was 59 cents a share, reflecting a 3.5% rise from the year-earlier figure.
Revenues in Detail
Bruker registered revenues of $638.9 million in the third quarter, up 4.9% year over year. The figure topped the Zacks Consensus Estimate by 4.1%.
Excluding the positive impact of 1.2% from acquisitions and a 9% impact from negative changes in foreign currency rates, the company witnessed organic revenue growth of 12.7%.
Bruker Corporation Price, Consensus and EPS Surprise
Bruker Corporation price-consensus-eps-surprise-chart | Bruker Corporation Quote
Geographically, the United States witnessed a 17.5% year-over-year rise in revenues in the reported quarter. Europe revenues fell 3.5% year over year, whereas revenues in the Asia Pacific increased 2.7%. Further, the Other category’s revenues moved up 8.3% 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 third quarter, BioSpin Group’s revenues fell 5.8% from the year-ago quarter to $175.7 million due to a difficult comparison in the third quarter of 2021 that registered over 20% growth.
CALID’s revenues rose 6.8% year over year to $207.5 million in the third quarter.CALID’s organic revenue grew in the mid-teens, driven by strong growth in both the Life Science Mass Spectrometry and Optics businesses.
Revenues of the Nano group climbed 13.8% to $199.1 million. Nano’s organic revenues grew in the low 20% range, driven by the strength in Nano's semiconductor and industrial businesses.
In the third quarter, the company’s Bruker Energy & Supercon Technologies’ (BEST) revenues were $59.3 million, up 4% year over year.
Margin Trend
In the quarter under review, Bruker’s gross profit rose 8.6% to $335.3 million. The gross margin expanded 178 basis points (bps) to 52.5%.
Meanwhile, selling, general & administrative expenses rose 2.5% to $144.8 million. Research and development expenses went up 7.8% year over year to $56.2 million. Adjusted operating expenses of $201 million increased 3.9% year over year.
Adjusted operating profit totaled $134.3 million, reflecting a 16.5% rise from the prior-year quarter. Further, the adjusted operating margin in the third quarter contracted 208 bps to 21%.
Financial Position
Bruker exited third-quarter 2022 with cash and cash equivalents and short-term investments of $626.2 million compared with $723 million at the end of second-quarter 2022. Total long-term debt (including the current portion) at the end of third-quarter 2022 was $1.15 billion compared with $1.19 billion at the end of second-quarter 2022.
Cumulative net cash flow from operating activities at the end of the third quarter was $102.9 million compared with $143.8 million in the year-ago period.
2022 Guidance
Bruker updated its revenue outlook for 2022 to account for stronger foreign currency translation headwinds.
The company expects revenue growth of approximately 1.5-3.5%, down from the earlier-announced revenue guidance of 2.5-4.5%. The Zacks Consensus Estimate for revenues is pegged at $2.52 billion. The company raised its organic revenue growth outlook to the band of 8-10% from its earlier guidance of 7-9%.
The company maintained its full-year adjusted EPS guidance 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 $2.30.
Our Take
Bruker ended the third quarter of 2022 with earnings and revenues beating the Zacks Consensus Estimate. The top line was driven by robust performance across most of the geographies and operating segments. Despite operational headwinds from lingering supply chain and logistic delays, lockdowns in China and the conflict in Europe, the company registered a strong demand for differentiated high-value scientific instruments and life science solutions. The third-quarter 2022 Scientific Instruments segment’s book-to-bill ratio was greater than 1, following a weaker Q2.
However, the decline in the BioSpin business does not bode well. Mounting operating costs are added concerns. The company continues to be challenged by supply chain disruptions and logistics delays, impacting business performance. The reduced reported-revenue growth guidance for 2022 is a major downside.
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 AMN Healthcare Services, Inc. (AMN - Free Report) , Medpace Holdings, Inc. (MEDP - Free Report) and Merit Medical Systems, Inc. (MMSI - Free Report) .
AMN Healthcare, carrying a Zacks Rank #2 (Buy), reported third-quarter 2022 adjusted EPS of $2.57, which beat the Zacks Consensus Estimate by 10.3%. Revenues of $1.14 billion outpaced the consensus mark by 3.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AMN Healthcare has an estimated long-term growth rate of 3.2%. AMN’s earnings surpassed estimates in all the trailing four quarters, the average being 10.9%.
Medpace Holdings, sporting a Zacks Rank #1, reported third-quarter 2022 EPS of $2.05, which beat the Zacks Consensus Estimate by 39.5%. Revenues of $383.7 million outpaced the consensus mark by 8.1%.
Medpace Holdings has an estimated growth rate of 44.9% for the full-year 2022. MEDP’s earnings surpassed estimates in all the trailing four quarters, the average being 22%.
Merit Medical, carrying a Zacks Rank #2, reported third-quarter 2022 adjusted EPS of 64 cents, which beat the Zacks Consensus Estimate by 20.8%. Revenues of $287.2 million outpaced the consensus mark by 5.2%.
Merit Medical has an estimated long-term growth rate of 11%. MMSI’s earnings surpassed estimates in all the trailing four quarters, the average being 25.4%.