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Bruker's (BRKR) New Launches Drive Growth Amid FX Woes
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Bruker (BRKR - Free Report) continues to grow driven by its fundamental commitment to innovate high-value solutions and the ongoing portfolio transformation. However, Bruker’s operations face the downside of excessive currency exposure. The stock carries a Zacks Rank #3 (Hold) currently.
Bruker’s CALID Group has been making decent progress lately, primarily because of the strong demand for differentiated instruments. The group is benefiting from sustained growth in the mass spectrometry business, including the FT-IR, Near IR and Raman molecular spectroscopy product lines. Bruker’s timsTOF platform is being adopted in 4D proteomics, epiproteomics and multiomics.
In 2023, the segment delivered strong high-teens percentage organic growth. During the year, the company launched timsTOF Ultra, which provides market-leading sensitivity and throughput with expanded peptide coverage and more accurate quantitation in unbiased 4D single-cell cell lines and tissue proteomics. More enhancements were announced for timsTOF methods, consumables and software for the next-generation unbiased high-fidelity 4D proteomics and 4D multiomics.
In addition, Bruker became a majority investor in the Swiss start-up company MIRO Analytical AG, complementing the gas-analysis spectroscopy portfolio in the company’s Optics division with fast, compact, highest-precision QCL (Quantum Cascade Laser) multi-trace gas analyzers.
Bruker Scientific Instruments (BSI) NANO microelectronics and semiconmetrology tools boomed with strong bookings and backlog. As a group, revenues continue to be driven by the strength of end markets, including academic and government, and industrial. The artificial intelligence megatrend is a key factor driving the success of semiconductor metrology and advanced packaging tools. Throughout 2023, the NANO surface division and advanced X-ray delivered strong revenue growth.
Bruker NANO Life Science fluorescence microscopy is gaining from product innovation and research demand and also includes a strong contribution from the 2022 acquisition of the Inscopix neuroscience research tools. During the fourth quarter of 2023, the company introduced Hysitron TI 990 TriboIndenter with superior levels of performance, automation and productivity in nanomechanical testing. The system features enhancements such as new measurement modes, 2X faster testing throughput and a larger 200mm x 300mm testing area.
Bruker earlier acquired the renowned functional cell biology company, PhenomeX (presently Bruker Cellular Analysis division), whose platforms are highly complementary to the company’s existing cellular and sub-cellular analysis tools. The deal expands Bruker’s footprint in translational research, clinical research and biopharma and also helps its Project Accelerate 2.0 initiative. The company is currently working on rightsizing the business and optimizing cost structures.
On the flip side, Bruker generates a substantial portion of its revenues in the international markets, primarily in Germany and other countries in the European Union, Switzerland and Japan. As a result, currency fluctuations continue to result in foreign currency transaction losses at the company. In addition, currency fluctuations could cause the price of Bruker’s products to be less competitive than its principal competitors' offerings.
In the fourth quarter of 2023, the non-GAAP gross margin performance was unfavorably affected by foreign exchange fluctuations. This is expected to remain a headwind for Bruker in the first quarter of 2024 as well, leading to a softer operating margin forecast.
Further, many of the countries in which Bruker operates, including the United States, Russia and certain European nations, have experienced and continue to face uncertain economic conditions. Companies conducting business in these nations have been impacted by unfavorable changes in economic or political conditions herein, including adverse changes in interest rates or tax rates, volatile financial and commodity markets, contraction in the availability of credit in the marketplace and changes in capital spending patterns.
Moreover, continued volatility in global financial markets might impact Bruker’s customers from obtaining adequate financing for their operations and proceeding with capital spending initiatives. This may lead to a drop in sales volume, potentially affecting the company’s operational results and cash flow. In addition, this continuous economic downturn could also cause Bruker to face increased pricing and cost pressure for its products and services, potentially impacting its operating margins and profitability. In fourth-quarter 2023, the company’s cost of revenues increased 23.9% year over year, causing the gross margin to fall by 129 basis points.
Cardinal Health’sstock has risen 13.3% in the past year. Earnings estimates for CAH have increased from $6.91 to $7.28 for fiscal 2024 and increased from $7.74 to $8.02 for fiscal 2025 in the past 30 days.
CAH’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 15.6%. In the last reported quarter, it delivered an earnings surprise of 16.7%.
Estimates for DaVita’s 2023 earnings per share have increased from $8.86 to $8.97 in the past 30 days. Shares of the company have risen 7.4% in the past year compared with the industry’s growth of 2.9%.
DVA’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 35.6%. In the last reported quarter, it delivered an earnings surprise of 22.2%.
Estimates for Insulet’s 2023 earnings per share have increased from $2.54 to $2.56 in the past 30 days. Shares of the company have decreased 34.7% in the past year against the industry’s increase of 7.2%.
PODD’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 100.1%. In the last reported quarter, it delivered an earnings surprise of 108.9%.
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Bruker's (BRKR) New Launches Drive Growth Amid FX Woes
Bruker (BRKR - Free Report) continues to grow driven by its fundamental commitment to innovate high-value solutions and the ongoing portfolio transformation. However, Bruker’s operations face the downside of excessive currency exposure. The stock carries a Zacks Rank #3 (Hold) currently.
Bruker’s CALID Group has been making decent progress lately, primarily because of the strong demand for differentiated instruments. The group is benefiting from sustained growth in the mass spectrometry business, including the FT-IR, Near IR and Raman molecular spectroscopy product lines. Bruker’s timsTOF platform is being adopted in 4D proteomics, epiproteomics and multiomics.
In 2023, the segment delivered strong high-teens percentage organic growth. During the year, the company launched timsTOF Ultra, which provides market-leading sensitivity and throughput with expanded peptide coverage and more accurate quantitation in unbiased 4D single-cell cell lines and tissue proteomics. More enhancements were announced for timsTOF methods, consumables and software for the next-generation unbiased high-fidelity 4D proteomics and 4D multiomics.
In addition, Bruker became a majority investor in the Swiss start-up company MIRO Analytical AG, complementing the gas-analysis spectroscopy portfolio in the company’s Optics division with fast, compact, highest-precision QCL (Quantum Cascade Laser) multi-trace gas analyzers.
Bruker Corporation Price
Bruker Corporation price | Bruker Corporation Quote
Bruker Scientific Instruments (BSI) NANO microelectronics and semiconmetrology tools boomed with strong bookings and backlog. As a group, revenues continue to be driven by the strength of end markets, including academic and government, and industrial. The artificial intelligence megatrend is a key factor driving the success of semiconductor metrology and advanced packaging tools. Throughout 2023, the NANO surface division and advanced X-ray delivered strong revenue growth.
Bruker NANO Life Science fluorescence microscopy is gaining from product innovation and research demand and also includes a strong contribution from the 2022 acquisition of the Inscopix neuroscience research tools. During the fourth quarter of 2023, the company introduced Hysitron TI 990 TriboIndenter with superior levels of performance, automation and productivity in nanomechanical testing. The system features enhancements such as new measurement modes, 2X faster testing throughput and a larger 200mm x 300mm testing area.
Bruker earlier acquired the renowned functional cell biology company, PhenomeX (presently Bruker Cellular Analysis division), whose platforms are highly complementary to the company’s existing cellular and sub-cellular analysis tools. The deal expands Bruker’s footprint in translational research, clinical research and biopharma and also helps its Project Accelerate 2.0 initiative. The company is currently working on rightsizing the business and optimizing cost structures.
On the flip side, Bruker generates a substantial portion of its revenues in the international markets, primarily in Germany and other countries in the European Union, Switzerland and Japan. As a result, currency fluctuations continue to result in foreign currency transaction losses at the company. In addition, currency fluctuations could cause the price of Bruker’s products to be less competitive than its principal competitors' offerings.
In the fourth quarter of 2023, the non-GAAP gross margin performance was unfavorably affected by foreign exchange fluctuations. This is expected to remain a headwind for Bruker in the first quarter of 2024 as well, leading to a softer operating margin forecast.
Further, many of the countries in which Bruker operates, including the United States, Russia and certain European nations, have experienced and continue to face uncertain economic conditions. Companies conducting business in these nations have been impacted by unfavorable changes in economic or political conditions herein, including adverse changes in interest rates or tax rates, volatile financial and commodity markets, contraction in the availability of credit in the marketplace and changes in capital spending patterns.
Moreover, continued volatility in global financial markets might impact Bruker’s customers from obtaining adequate financing for their operations and proceeding with capital spending initiatives. This may lead to a drop in sales volume, potentially affecting the company’s operational results and cash flow. In addition, this continuous economic downturn could also cause Bruker to face increased pricing and cost pressure for its products and services, potentially impacting its operating margins and profitability. In fourth-quarter 2023, the company’s cost of revenues increased 23.9% year over year, causing the gross margin to fall by 129 basis points.
Key Picks
Some better-ranked stocks in the broader medical space are Cardinal Health (CAH - Free Report) , DaVita (DVA - Free Report) and Insulet (PODD - Free Report) . Cardinal Health and DaVita sport a Zacks Rank #1 (Strong Buy) each, while Insulet carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cardinal Health’sstock has risen 13.3% in the past year. Earnings estimates for CAH have increased from $6.91 to $7.28 for fiscal 2024 and increased from $7.74 to $8.02 for fiscal 2025 in the past 30 days.
CAH’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 15.6%. In the last reported quarter, it delivered an earnings surprise of 16.7%.
Estimates for DaVita’s 2023 earnings per share have increased from $8.86 to $8.97 in the past 30 days. Shares of the company have risen 7.4% in the past year compared with the industry’s growth of 2.9%.
DVA’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 35.6%. In the last reported quarter, it delivered an earnings surprise of 22.2%.
Estimates for Insulet’s 2023 earnings per share have increased from $2.54 to $2.56 in the past 30 days. Shares of the company have decreased 34.7% in the past year against the industry’s increase of 7.2%.
PODD’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 100.1%. In the last reported quarter, it delivered an earnings surprise of 108.9%.