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Bruker (BRKR) Q4 Earnings Surpass Estimates, Margins Down
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Bruker Corporation (BRKR - Free Report) delivered adjusted earnings per share (EPS) of 70 cents in the fourth quarter of 2023, down 5.4% year over year. The figure exceeded the Zacks Consensus Estimate by 7.7%.
The adjustments include expenses related to the amortization of purchased intangibles, acquisition-related costs and restructuring costs, among others.
GAAP EPS in the quarter was $1.41, surging 113.6% from the year-earlier quarter’s figure of 66 cents.
For the full year, adjusted earnings were $2.58 per share, rising 10.3% from the year-ago period’s levels. It also topped the Zacks Consensus Estimate by 1.9%.
Revenues in Detail
Bruker registered revenues of $854.5 million in the fourth quarter, up 20.6% year over year. The figure topped the Zacks Consensus Estimate by 2.9%.
Excluding the positive impacts of 2.7% from acquisitions and 2% from changes in foreign currency rates, the company witnessed organic revenue growth of 15.9%.
Total revenues for 2023 were $2.96 billion, reflecting a 17.1% rise from the year-ago period’s levels. The figure beat the Zacks Consensus Estimate by 0.7%.
On a geographic basis, the United States witnessed a 19.3% year-over-year rise in revenues to $212.2 million. Our model projected the region’s revenues to be $193.4 million.
Europe revenues increased 20.2% year over year to $284.2 million, while revenues in the Asia Pacific rose 21.9% to $296.2 million. For Europe, our model’s projected revenues for the fourth quarter to be $281.7 million. In the Asia Pacific, it was projected to be $291.1 million.
The Other category’s revenues moved up 19.9% year over year to $61.9 million. Our model’s projected revenues from this segment to be $64.2 million.
Segmental Analysis
Bruker reports results under two segments — BSI (comprising BioSpin and CALID and Nano) and Bruker Energy & Supercon Technologies (BEST). BSI
Within the segment, BioSpin Group’s revenues rose 26.8% from the year-ago quarter’s levels to $257.9 million. BioSpin witnessed growth across biopharma, academic government, industrial research and applied markets and in the new integrated data solutions or IDS division. Our model’s projected revenues in the segment were $252.5 million.
CALID’s revenues increased 16.3% year over year to $257.2 million in the fourth quarter. The upside was driven by strong growth in life science mass spectrometry driven by the timsTOF platform. This compares with our model’s projected revenues of $265.3 million in this segment.
Revenues of the Nano group climbed 18.2% to $268.5 million. Our model projected revenues for this segment to be $236 million.
BEST
In the fourth quarter, the BEST segment’s revenues were $75.2 million, up 27.7% year over year. This compares with our model’s segmental projection of $76.5 million.
Margin Trend
In the quarter under review, Bruker’s gross profit rose 17.6% to $430.3 million. The gross margin contracted 129 basis points (bps) to 50.4%, on a 23.9% rise.
SG&A expenses rose 28.3% to $211.3 million. R&D expenses went up 31.3% year over year to $83.4 million. Adjusted operating expenses of $294.7 million increased 29.1% year over year.
Bruker Corporation Price, Consensus and EPS Surprise
The adjusted operating profit totaled $135.6 million, down 1.5% from the prior-year quarter’s levels. The adjusted operating margin in the fourth quarter contracted 357 bps to 15.9%.
Financial Position
Bruker exited 2023 with cash and cash equivalents of $488.3 million compared with $645.5 million at the end of 2022. The total long-term debt (including the current portion) at the end of 2023 was $1.28 billion, up from $1.21 billion at the end of 2022.
At the end of 2023, the cumulative net cash flow from operating activities was $205.5 million compared with $171.5 million during last year’s comparable period.
2024 Guidance
Bruker provided the outlook for 2024.
For the full year, the company expects revenues in the range of $3.23-$3.29 billion. This indicates year-over-year revenue growth of 9-11% on a reported basis and growth of 5-7% on an organic basis. The Zacks Consensus Estimate for revenues is pegged at $3.12 billion.
BRKR expects its 2024 adjusted EPS in the range of $2.71-$2.76. The Zacks Consensus Estimate is pegged at $2.73 per share.
Our Take
Bruker ended the fourth quarter of 2023 impressively, with earnings and revenues beating estimates. Bruker’s strong growth can be attributed to its fundamental commitment to innovations and delivering high-value solutions for customers and the ongoing portfolio transformation. The BioSpin segment witnessed growth across biopharma, academic government, industrial research and applied markets and the newly-integrated data solutions or IDS division. The upside in the CALID segment was driven by strong growth in life science mass spectrometry, driven by the timsTOF platform. However, the contraction of gross and adjusted operating margins is discouraging.
Zacks Rank & Other Key Picks
Bruker currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the broader medical space are Stryker Corporation (SYK - Free Report) , Cencora, Inc. (COR - Free Report) and Cardinal Health (CAH - Free Report) .
Stryker, carrying a Zacks Rank #2, reported a fourth-quarter 2023 adjusted EPS of $3.46, beating the Zacks Consensus Estimate by 5.8%. Revenues of $5.8 billion outpaced the consensus estimate by 3.8%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stryker has an estimated earnings growth rate of 11.5% for 2025 compared with the S&P 500’s 9.9%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average being 5.1%.
Cencora, carrying a Zacks Rank #2, reported a first-quarter fiscal 2024 adjusted EPS of $3.28, which beat the Zacks Consensus Estimate by 14.7%. Revenues of $72.3 billion outpaced the Zacks Consensus Estimate by 5.1%.
COR has an earnings yield of 5.75% compared with the industry’s 1.85%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average being 6.7%.
Cardinal Health reported second-quarter fiscal 2024 adjusted earnings of $1.82, which beat the Zacks Consensus Estimate by 16.7%. Revenues of $57.45 billion increased 11.6% on a year-over-year basis and also topped the Zacks Consensus Estimate by 1.1%.
CAH has a long-term estimated earnings growth rate of 15.3% compared with the industry’s 11.8% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 15.6%.
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Bruker (BRKR) Q4 Earnings Surpass Estimates, Margins Down
Bruker Corporation (BRKR - Free Report) delivered adjusted earnings per share (EPS) of 70 cents in the fourth quarter of 2023, down 5.4% year over year. The figure exceeded the Zacks Consensus Estimate by 7.7%.
The adjustments include expenses related to the amortization of purchased intangibles, acquisition-related costs and restructuring costs, among others.
GAAP EPS in the quarter was $1.41, surging 113.6% from the year-earlier quarter’s figure of 66 cents.
For the full year, adjusted earnings were $2.58 per share, rising 10.3% from the year-ago period’s levels. It also topped the Zacks Consensus Estimate by 1.9%.
Revenues in Detail
Bruker registered revenues of $854.5 million in the fourth quarter, up 20.6% year over year. The figure topped the Zacks Consensus Estimate by 2.9%.
Excluding the positive impacts of 2.7% from acquisitions and 2% from changes in foreign currency rates, the company witnessed organic revenue growth of 15.9%.
Total revenues for 2023 were $2.96 billion, reflecting a 17.1% rise from the year-ago period’s levels. The figure beat the Zacks Consensus Estimate by 0.7%.
On a geographic basis, the United States witnessed a 19.3% year-over-year rise in revenues to $212.2 million. Our model projected the region’s revenues to be $193.4 million.
Europe revenues increased 20.2% year over year to $284.2 million, while revenues in the Asia Pacific rose 21.9% to $296.2 million. For Europe, our model’s projected revenues for the fourth quarter to be $281.7 million. In the Asia Pacific, it was projected to be $291.1 million.
The Other category’s revenues moved up 19.9% year over year to $61.9 million. Our model’s projected revenues from this segment to be $64.2 million.
Segmental Analysis
Bruker reports results under two segments — BSI (comprising BioSpin and CALID and Nano) and Bruker Energy & Supercon Technologies (BEST).
BSI
Within the segment, BioSpin Group’s revenues rose 26.8% from the year-ago quarter’s levels to $257.9 million. BioSpin witnessed growth across biopharma, academic government, industrial research and applied markets and in the new integrated data solutions or IDS division. Our model’s projected revenues in the segment were $252.5 million.
CALID’s revenues increased 16.3% year over year to $257.2 million in the fourth quarter. The upside was driven by strong growth in life science mass spectrometry driven by the timsTOF platform. This compares with our model’s projected revenues of $265.3 million in this segment.
Revenues of the Nano group climbed 18.2% to $268.5 million. Our model projected revenues for this segment to be $236 million.
BEST
In the fourth quarter, the BEST segment’s revenues were $75.2 million, up 27.7% year over year. This compares with our model’s segmental projection of $76.5 million.
Margin Trend
In the quarter under review, Bruker’s gross profit rose 17.6% to $430.3 million. The gross margin contracted 129 basis points (bps) to 50.4%, on a 23.9% rise.
SG&A expenses rose 28.3% to $211.3 million. R&D expenses went up 31.3% year over year to $83.4 million. Adjusted operating expenses of $294.7 million increased 29.1% year over year.
Bruker Corporation Price, Consensus and EPS Surprise
Bruker Corporation price-consensus-eps-surprise-chart | Bruker Corporation Quote
The adjusted operating profit totaled $135.6 million, down 1.5% from the prior-year quarter’s levels. The adjusted operating margin in the fourth quarter contracted 357 bps to 15.9%.
Financial Position
Bruker exited 2023 with cash and cash equivalents of $488.3 million compared with $645.5 million at the end of 2022. The total long-term debt (including the current portion) at the end of 2023 was $1.28 billion, up from $1.21 billion at the end of 2022.
At the end of 2023, the cumulative net cash flow from operating activities was $205.5 million compared with $171.5 million during last year’s comparable period.
2024 Guidance
Bruker provided the outlook for 2024.
For the full year, the company expects revenues in the range of $3.23-$3.29 billion. This indicates year-over-year revenue growth of 9-11% on a reported basis and growth of 5-7% on an organic basis. The Zacks Consensus Estimate for revenues is pegged at $3.12 billion.
BRKR expects its 2024 adjusted EPS in the range of $2.71-$2.76. The Zacks Consensus Estimate is pegged at $2.73 per share.
Our Take
Bruker ended the fourth quarter of 2023 impressively, with earnings and revenues beating estimates. Bruker’s strong growth can be attributed to its fundamental commitment to innovations and delivering high-value solutions for customers and the ongoing portfolio transformation. The BioSpin segment witnessed growth across biopharma, academic government, industrial research and applied markets and the newly-integrated data solutions or IDS division. The upside in the CALID segment was driven by strong growth in life science mass spectrometry, driven by the timsTOF platform. However, the contraction of gross and adjusted operating margins is discouraging.
Zacks Rank & Other Key Picks
Bruker currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the broader medical space are Stryker Corporation (SYK - Free Report) , Cencora, Inc. (COR - Free Report) and Cardinal Health (CAH - Free Report) .
Stryker, carrying a Zacks Rank #2, reported a fourth-quarter 2023 adjusted EPS of $3.46, beating the Zacks Consensus Estimate by 5.8%. Revenues of $5.8 billion outpaced the consensus estimate by 3.8%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stryker has an estimated earnings growth rate of 11.5% for 2025 compared with the S&P 500’s 9.9%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average being 5.1%.
Cencora, carrying a Zacks Rank #2, reported a first-quarter fiscal 2024 adjusted EPS of $3.28, which beat the Zacks Consensus Estimate by 14.7%. Revenues of $72.3 billion outpaced the Zacks Consensus Estimate by 5.1%.
COR has an earnings yield of 5.75% compared with the industry’s 1.85%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average being 6.7%.
Cardinal Health reported second-quarter fiscal 2024 adjusted earnings of $1.82, which beat the Zacks Consensus Estimate by 16.7%. Revenues of $57.45 billion increased 11.6% on a year-over-year basis and also topped the Zacks Consensus Estimate by 1.1%.
CAH has a long-term estimated earnings growth rate of 15.3% compared with the industry’s 11.8% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 15.6%.