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Here's Why Investors Should Retain Bruker (BRKR) Stock Now
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Bruker Corporation (BRKR - Free Report) is likely to grow in the coming quarters due to the solid prospects of the Bruker Scientific Instruments (“BSI”) Nano and BioSpin group. The addition of PhenomeX complements the Bruker cellular and sub-cellular analysis tools and brings opportunities for commercial synergies.
However, BRKR’s operations are subject to intense competition from its peers in the industry.
In the past year, this Zacks Rank #3 (Hold) stock has increased 5% against the 14.2% fall of the industry and a 22.6% rise of the S&P 500 composite.
The renowned medical device company has a market capitalization of $9.86 billion. Bruker projects a long-term estimated earnings growth rate of 11.1% compared with 8% of the industry. BRKR’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 10.19%.
Let’s delve deeper.
Upsides
BSI Nano Group Prospects Bright: Bruker Nano Life Science fluorescence microscopy is gaining from product innovation and research demand. The 2022 acquisition of Inscopix strongly contributed to business growth in the third quarter of 2023. The company strategically expands its technology base and product offerings through selected mergers, acquisitions and strategic alliances. Bruker’s latest $108-million buyout deal of PhenomeX is highly complementary to NANO group’s existing cellular and sub-cellular analysis tools, including the high-performance CellScape spatial biology platform.
Strong Prospects for BioSpin: Throughout the nine months of fiscal 2023, the company delivered growth across biopharma, academic and government markets, industrial research and applied markets. Bruker’s new integrated data solutions software division also did well with its SciY scientific and lab software platform. In the third quarter, BioSpin’s revenue upside can be primarily attributed to the strong demand for instruments, especially in Nuclear Magnetic Resonance (NMR) and software businesses.
Raised Guidance: For the full year, the company expects revenues in the range of $2.88-$2.91 billion (previously $2.85-$2.90 billion). This indicates year-over-year revenue growth of 14-15% (earlier 12.5-14.5%) on a reported basis and growth of 11.5-12.5% (previously 9.5-11.5%) on an organic basis. The Zacks Consensus Estimate for revenues is pegged at $2.88 billion.
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BRKR expects its full-year 2023 adjusted earnings per share in the range of $2.48-$2.53 (or 6-8% growth year over year). The guidance for the metric was $2.55-$2.60, suggesting 9-11% year-over-year growth. The Zacks Consensus Estimate is pegged at $2.55 per share.
Downsides
Inflationary Challenges May Hurt Margins: Like its peers, Bruker’s operations are prone to increasing inflation, geopolitical uncertainties, challenges regarding the availability of key raw materials and component fluctuations in foreign currency exchange rates and interest rates. On a non-GAAP basis, the company’s gross margin was negatively impacted by a 100-basis point foreign exchange headwind in the third quarter of 2023.
A Competitive Landscape: Bruker faces substantial competition in a consolidating industry and expects competition in all of its markets to increase further. Primary competitors include the established companies providing products using existing technologies that perform many of the same functions marketed by Bruker. Unfortunately, a number of Bruker’s peers have expanded their market share in recent years through business combinations.
Estimate Trend
The Zacks Consensus Estimate for Bruker’s 2023 earnings per share (EPS) has remained constant at $2.52 in the past 60 days.
The Zacks Consensus Estimate for the company’s 2023 revenues is pegged at $2.52 billion. The projection indicates a 7.7% rise from the year-ago reported number.
Haemonetics’ earnings estimates have remained constant at $3.89 in 2023 and at $4.15 in 2024 in the past 30 days.
HAE’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 16.1%. In the last reported quarter, it posted an earnings surprise of 5.3%.
Estimates for DaVita’s 2023 earnings per share have remained constant at $8.07 in the past 30 days.
DVA’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 36.6%. In the last reported quarter, it delivered an average earnings surprise of 48.4%.
Estimates for HealthEquity’s 2023 earnings per share have increased from $2.03 to $2.15 in the past 30 days.
HQY’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 16.5%. In the last reported quarter, it delivered an average earnings surprise of 22.5%.
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Here's Why Investors Should Retain Bruker (BRKR) Stock Now
Bruker Corporation (BRKR - Free Report) is likely to grow in the coming quarters due to the solid prospects of the Bruker Scientific Instruments (“BSI”) Nano and BioSpin group. The addition of PhenomeX complements the Bruker cellular and sub-cellular analysis tools and brings opportunities for commercial synergies.
However, BRKR’s operations are subject to intense competition from its peers in the industry.
In the past year, this Zacks Rank #3 (Hold) stock has increased 5% against the 14.2% fall of the industry and a 22.6% rise of the S&P 500 composite.
The renowned medical device company has a market capitalization of $9.86 billion. Bruker projects a long-term estimated earnings growth rate of 11.1% compared with 8% of the industry. BRKR’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 10.19%.
Let’s delve deeper.
Upsides
BSI Nano Group Prospects Bright: Bruker Nano Life Science fluorescence microscopy is gaining from product innovation and research demand. The 2022 acquisition of Inscopix strongly contributed to business growth in the third quarter of 2023. The company strategically expands its technology base and product offerings through selected mergers, acquisitions and strategic alliances. Bruker’s latest $108-million buyout deal of PhenomeX is highly complementary to NANO group’s existing cellular and sub-cellular analysis tools, including the high-performance CellScape spatial biology platform.
Strong Prospects for BioSpin: Throughout the nine months of fiscal 2023, the company delivered growth across biopharma, academic and government markets, industrial research and applied markets. Bruker’s new integrated data solutions software division also did well with its SciY scientific and lab software platform. In the third quarter, BioSpin’s revenue upside can be primarily attributed to the strong demand for instruments, especially in Nuclear Magnetic Resonance (NMR) and software businesses.
Raised Guidance: For the full year, the company expects revenues in the range of $2.88-$2.91 billion (previously $2.85-$2.90 billion). This indicates year-over-year revenue growth of 14-15% (earlier 12.5-14.5%) on a reported basis and growth of 11.5-12.5% (previously 9.5-11.5%) on an organic basis. The Zacks Consensus Estimate for revenues is pegged at $2.88 billion.
BRKR expects its full-year 2023 adjusted earnings per share in the range of $2.48-$2.53 (or 6-8% growth year over year). The guidance for the metric was $2.55-$2.60, suggesting 9-11% year-over-year growth. The Zacks Consensus Estimate is pegged at $2.55 per share.
Downsides
Inflationary Challenges May Hurt Margins: Like its peers, Bruker’s operations are prone to increasing inflation, geopolitical uncertainties, challenges regarding the availability of key raw materials and component fluctuations in foreign currency exchange rates and interest rates. On a non-GAAP basis, the company’s gross margin was negatively impacted by a 100-basis point foreign exchange headwind in the third quarter of 2023.
A Competitive Landscape: Bruker faces substantial competition in a consolidating industry and expects competition in all of its markets to increase further. Primary competitors include the established companies providing products using existing technologies that perform many of the same functions marketed by Bruker. Unfortunately, a number of Bruker’s peers have expanded their market share in recent years through business combinations.
Estimate Trend
The Zacks Consensus Estimate for Bruker’s 2023 earnings per share (EPS) has remained constant at $2.52 in the past 60 days.
The Zacks Consensus Estimate for the company’s 2023 revenues is pegged at $2.52 billion. The projection indicates a 7.7% rise from the year-ago reported number.
Key Picks
Some better-ranked stocks in the broader medical space are Haemonetics (HAE - Free Report) , DaVita (DVA - Free Report) and HealthEquity (HQY - Free Report) . Haemonetics and HealthEquity each carry a Zacks Rank #2 (Buy), and DaVita sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Haemonetics’ earnings estimates have remained constant at $3.89 in 2023 and at $4.15 in 2024 in the past 30 days.
HAE’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 16.1%. In the last reported quarter, it posted an earnings surprise of 5.3%.
Estimates for DaVita’s 2023 earnings per share have remained constant at $8.07 in the past 30 days.
DVA’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 36.6%. In the last reported quarter, it delivered an average earnings surprise of 48.4%.
Estimates for HealthEquity’s 2023 earnings per share have increased from $2.03 to $2.15 in the past 30 days.
HQY’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 16.5%. In the last reported quarter, it delivered an average earnings surprise of 22.5%.