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Bruker (BRKR) Q4 Earnings Beat Estimates, Margins Increase
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Bruker Corporation (BRKR - Free Report) delivered adjusted earnings per share (EPS) of 74 cents in the fourth quarter of 2022, up 25.4% year over year. Moreover, the figure exceeded the Zacks Consensus Estimate by 2.8%.
The adjustments include expenses related to purchased intangible amortization, acquisition-related costs and restructuring costs, among others.
GAAP EPS for the quarter was 66 cents a share, reflecting a 32% rise from the year-earlier figure.
For the full year, adjusted earnings were $2.30 per share, up 9.5% from the year-ago period’s levels. The figure, however, lagged the Zacks Consensus Estimate by 0.9%.
Revenues in Detail
Bruker registered revenues of $708.4 million in the fourth quarter, up 3.6% year over year. The figure topped the Zacks Consensus Estimate by 5.5%.
Excluding the positive impact of 1.7% from acquisitions and a 7% impact from negative changes in foreign currency rates, the company witnessed organic revenue growth of 8.9%.
Geographically, the United States witnessed an 11.8% year-over-year rise in revenues in the reported quarter. Europe revenues fell 13.9% year over year, whereas revenues in the Asia Pacific increased 19.4%. Further, the Other category’s revenues moved up 10.3% year over year.
Bruker Corporation Price, Consensus and EPS Surprise
Total revenues for 2022 were $2.53 billion, up 4.7% from the year-ago period’s levels. The figure topped the Zacks Consensus Estimate by 1.6%.
Segments in Detail
Bruker reports results under three segments, namely, BSI Life Science (comprising BioSpin and CALID), BSI Nano and BEST.
In the fourth quarter, BioSpin Group’s revenues rose 3.5% from the year-ago quarter to $203.4 million, led by strong growth in preclinical imaging and a notable contribution from the biopharma process analytical technology software acquisition.
CALID’s revenues fell 7.7% year over year to $221.2 million in the fourth quarter due to constrained by supply chain delays.
Revenues of the Nano group climbed 17.8% to $227.2 million. Nano’s organic revenues grew in the low 20% range, driven by the strength in Nano's semiconductor and industrial businesses.
In the fourth quarter, the company’s Bruker Energy & Supercon Technologies’ (BEST) revenues were $58.9 million, up 1.9% year over year.
Margin Trend
In the quarter under review, Bruker’s gross profit rose 7.1% to $365.9 million. The gross margin expanded 167 basis points (bps) to 51.7%.
Selling, general & administrative expenses rose 7.4% to $164.7 million. Research and development expenses went up 9.3% year over year to $63.5 million. Adjusted operating expenses of $228.2 million increased 7.9% year over year.
Adjusted operating profit totaled $137.7 million, reflecting a 5.8% rise from the prior-year quarter. Further, the adjusted operating margin in the fourth quarter expanded 39 bps to 19.4%.
Financial Position
Bruker exited 2022 with cash and cash equivalents and short-term investments of $645.5 million compared with $1.17 billion at the end of 2021. Total long-term debt (including the current portion) at the end of 2022 was $2.11 billion compared with $2.16 billion at the end of 2021.
Cumulative net cash flow from operating activities at the end of the fourth quarter was $262 million compared with $282.4 million in the year-ago period.
2023 Guidance
Bruker has provided its outlook for 2023.
The company expects revenue to be in the range of $2.81- $2.86 billion, indicating 11% to 13% year-over-year reported growth. The Zacks Consensus Estimate for revenues is pegged at $2.60 billion. The company expects its organic revenue growth to the band of 8-10%.
The company expects its full-year adjusted EPS guidance in the band of $2.52-$2.57, indicating an uptick of 8-10% from 2022 reported figure. The Zacks Consensus Estimate for the same is pegged at $2.53.
Our Take
Bruker ended 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. Continued demand for our differentiated high-value solutions drove robust performance in bookings and revenues. Nano’s revenue growth in semiconductor industrial markets was particularly strong in the reported quarter.
However, the decline in the CALID 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.
Zacks Rank and Key Picks
Bruker currently carries Zacks Rank #2 (Buy).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Neogen Corporation (NEOG - Free Report) , McKesson Corporation (MCK - Free Report) and Hologic, Inc. (HOLX - Free Report) .
Neogen, carrying a Zacks Rank #2, reported second-quarter fiscal 2023 adjusted EPS of 15 cents, beating the Zacks Consensus Estimate of a loss of 8 cents per share. Revenues of $230 million outpaced the consensus mark by 0.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Neogen has an earnings yield of 2.5% compared with the industry’s 0.2%. NEOG’s earnings surpassed estimates in two of the trailing four quarters and missed the same in two, the average being 70.11%.
McKesson, having a Zacks Rank #2, reported third-quarter 2023 adjusted EPS of $6.90, which beat the Zacks Consensus Estimate by 8.8%. Revenues of $70.49 billion outpaced the consensus mark by 0.02%.
McKesson has a long-term estimated growth rate of 10.1%. MCK’s earnings surpassed estimates in two of the trailing four quarters and missed the same in two, the average being 4.79%.
Hologic reported first-quarter 2023 adjusted earnings of $1.07 per share, beating the Zacks Consensus Estimate by 18.9%. Revenues of $1.07 billion surpassed the Zacks Consensus Estimate by 9.5%. It currently sports a Zacks Rank #1.
Hologic has a long-term estimated growth rate of 15.2%. HOLX’s earnings surpassed estimates in the trailing four quarters, the average surprise being 46.08%.
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Bruker (BRKR) Q4 Earnings Beat Estimates, Margins Increase
Bruker Corporation (BRKR - Free Report) delivered adjusted earnings per share (EPS) of 74 cents in the fourth quarter of 2022, up 25.4% year over year. Moreover, the figure exceeded the Zacks Consensus Estimate by 2.8%.
The adjustments include expenses related to purchased intangible amortization, acquisition-related costs and restructuring costs, among others.
GAAP EPS for the quarter was 66 cents a share, reflecting a 32% rise from the year-earlier figure.
For the full year, adjusted earnings were $2.30 per share, up 9.5% from the year-ago period’s levels. The figure, however, lagged the Zacks Consensus Estimate by 0.9%.
Revenues in Detail
Bruker registered revenues of $708.4 million in the fourth quarter, up 3.6% year over year. The figure topped the Zacks Consensus Estimate by 5.5%.
Excluding the positive impact of 1.7% from acquisitions and a 7% impact from negative changes in foreign currency rates, the company witnessed organic revenue growth of 8.9%.
Geographically, the United States witnessed an 11.8% year-over-year rise in revenues in the reported quarter. Europe revenues fell 13.9% year over year, whereas revenues in the Asia Pacific increased 19.4%. Further, the Other category’s revenues moved up 10.3% year over year.
Bruker Corporation Price, Consensus and EPS Surprise
Bruker Corporation price-consensus-eps-surprise-chart | Bruker Corporation Quote
Total revenues for 2022 were $2.53 billion, up 4.7% from the year-ago period’s levels. The figure topped the Zacks Consensus Estimate by 1.6%.
Segments in Detail
Bruker reports results under three segments, namely, BSI Life Science (comprising BioSpin and CALID), BSI Nano and BEST.
In the fourth quarter, BioSpin Group’s revenues rose 3.5% from the year-ago quarter to $203.4 million, led by strong growth in preclinical imaging and a notable contribution from the biopharma process analytical technology software acquisition.
CALID’s revenues fell 7.7% year over year to $221.2 million in the fourth quarter due to constrained by supply chain delays.
Revenues of the Nano group climbed 17.8% to $227.2 million. Nano’s organic revenues grew in the low 20% range, driven by the strength in Nano's semiconductor and industrial businesses.
In the fourth quarter, the company’s Bruker Energy & Supercon Technologies’ (BEST) revenues were $58.9 million, up 1.9% year over year.
Margin Trend
In the quarter under review, Bruker’s gross profit rose 7.1% to $365.9 million. The gross margin expanded 167 basis points (bps) to 51.7%.
Selling, general & administrative expenses rose 7.4% to $164.7 million. Research and development expenses went up 9.3% year over year to $63.5 million. Adjusted operating expenses of $228.2 million increased 7.9% year over year.
Adjusted operating profit totaled $137.7 million, reflecting a 5.8% rise from the prior-year quarter. Further, the adjusted operating margin in the fourth quarter expanded 39 bps to 19.4%.
Financial Position
Bruker exited 2022 with cash and cash equivalents and short-term investments of $645.5 million compared with $1.17 billion at the end of 2021. Total long-term debt (including the current portion) at the end of 2022 was $2.11 billion compared with $2.16 billion at the end of 2021.
Cumulative net cash flow from operating activities at the end of the fourth quarter was $262 million compared with $282.4 million in the year-ago period.
2023 Guidance
Bruker has provided its outlook for 2023.
The company expects revenue to be in the range of $2.81- $2.86 billion, indicating 11% to 13% year-over-year reported growth. The Zacks Consensus Estimate for revenues is pegged at $2.60 billion. The company expects its organic revenue growth to the band of 8-10%.
The company expects its full-year adjusted EPS guidance in the band of $2.52-$2.57, indicating an uptick of 8-10% from 2022 reported figure. The Zacks Consensus Estimate for the same is pegged at $2.53.
Our Take
Bruker ended 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. Continued demand for our differentiated high-value solutions drove robust performance in bookings and revenues. Nano’s revenue growth in semiconductor industrial markets was particularly strong in the reported quarter.
However, the decline in the CALID 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.
Zacks Rank and Key Picks
Bruker currently carries Zacks Rank #2 (Buy).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Neogen Corporation (NEOG - Free Report) , McKesson Corporation (MCK - Free Report) and Hologic, Inc. (HOLX - Free Report) .
Neogen, carrying a Zacks Rank #2, reported second-quarter fiscal 2023 adjusted EPS of 15 cents, beating the Zacks Consensus Estimate of a loss of 8 cents per share. Revenues of $230 million outpaced the consensus mark by 0.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Neogen has an earnings yield of 2.5% compared with the industry’s 0.2%. NEOG’s earnings surpassed estimates in two of the trailing four quarters and missed the same in two, the average being 70.11%.
McKesson, having a Zacks Rank #2, reported third-quarter 2023 adjusted EPS of $6.90, which beat the Zacks Consensus Estimate by 8.8%. Revenues of $70.49 billion outpaced the consensus mark by 0.02%.
McKesson has a long-term estimated growth rate of 10.1%. MCK’s earnings surpassed estimates in two of the trailing four quarters and missed the same in two, the average being 4.79%.
Hologic reported first-quarter 2023 adjusted earnings of $1.07 per share, beating the Zacks Consensus Estimate by 18.9%. Revenues of $1.07 billion surpassed the Zacks Consensus Estimate by 9.5%. It currently sports a Zacks Rank #1.
Hologic has a long-term estimated growth rate of 15.2%. HOLX’s earnings surpassed estimates in the trailing four quarters, the average surprise being 46.08%.