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Bruker (BRKR) Up 20.7% Since Last Earnings: What's Driving It?
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Bruker Corporation (BRKR - Free Report) appears in good shape, with its shares rising 20.7% since the fourth-quarter earnings release. The company continues to benefit from its innovative, high-performance product lines. The AI-driven semiconductor and advanced packaging metrology tools in the NANO group are performing well.
The Zacks Rank #2 (Buy) stock has increased 20.7% since the last earnings release compared with the industry’s rise of 15%. The Medical sector has gained 3.6% in the said time frame. The company has a market capitalization of $12.75 billion.
Its earnings are expected to grow 14.4% in the next five years. BRKR’s ROE for the trailing 12 months was 29.9%, better than the industry average of (12.5%).
What’s Aiding Bruker?
BSI Nano Group Prospects Bright: In the past few quarters, NANO’s microelectronics and semiconmetrology tools boomed with strong bookings and a strong backlog. As a group, revenues continue to be driven by the strength of end markets, including academic and government, industrial. The AI 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.
CALID Group Holds Potential: Bruker’s CALID Group is benefiting from the sustained growth in the mass spectrometry business, including the FT-IR, Near IR and Raman molecular spectroscopy product lines. In 2023, BRKR 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.
Strong Solvency but Leveraged Balance Sheet: At the end of the fourth quarter of 2023, Bruker reported cash and cash equivalents of $488.3 million against the corresponding current maturities of the long-term debt of $121.2 million. This suggests a sound financial position. Moreover, the total debt at the quarter end was $1.16 billion compared with $1.20 billion at the end of 2022.
What’s Ahead for the Stock?
A vast majority of Bruker BioSpin’s customers include academic and government customers as well as pharmaceutical and biotechnology companies. In 2023, the segment registered growth across the biopharma, academic, government, industrial research and applied markets and in the new integrated data solutions or IDS division. This trend is expected to continue further, driving growth. Per Precedence Research, the global preclinical imaging market was valued at $2.0 billion in 2022 and is likely to witness a CAGR of 4.3% up to 2032. We believe this translates into a golden opportunity for Bruker to expand its foothold in the PCI market and earn higher profits from this division.
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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 5-7% on an organic basis. The Zacks Consensus Estimate for revenues is pegged at $3.12 billion.
Bruker expects its 2024 adjusted earnings per share to be in the range of $2.71-$2.76. The Zacks Consensus Estimate is pegged at $2.73.
Estimate Trends
In the past 90 days, the Zacks Consensus Estimate for the company’s 2024 earnings has moved 1.1% north to $2.74.
The Zacks Consensus Estimate for 2024 revenues is pegged at $3.27 billion, suggesting a 10.2% growth from the 2023 reported number.
Key Picks
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, carrying a Zacks Rank #2, reported second-quarter fiscal 2024 adjusted earnings of $1.82, which beat the Zacks Consensus Estimate by 16.7%. Revenues of $57.45 billion improved 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) Up 20.7% Since Last Earnings: What's Driving It?
Bruker Corporation (BRKR - Free Report) appears in good shape, with its shares rising 20.7% since the fourth-quarter earnings release. The company continues to benefit from its innovative, high-performance product lines. The AI-driven semiconductor and advanced packaging metrology tools in the NANO group are performing well.
The Zacks Rank #2 (Buy) stock has increased 20.7% since the last earnings release compared with the industry’s rise of 15%. The Medical sector has gained 3.6% in the said time frame. The company has a market capitalization of $12.75 billion.
Its earnings are expected to grow 14.4% in the next five years. BRKR’s ROE for the trailing 12 months was 29.9%, better than the industry average of (12.5%).
What’s Aiding Bruker?
BSI Nano Group Prospects Bright: In the past few quarters, NANO’s microelectronics and semiconmetrology tools boomed with strong bookings and a strong backlog. As a group, revenues continue to be driven by the strength of end markets, including academic and government, industrial. The AI 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.
CALID Group Holds Potential: Bruker’s CALID Group is benefiting from the sustained growth in the mass spectrometry business, including the FT-IR, Near IR and Raman molecular spectroscopy product lines. In 2023, BRKR 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.
Strong Solvency but Leveraged Balance Sheet: At the end of the fourth quarter of 2023, Bruker reported cash and cash equivalents of $488.3 million against the corresponding current maturities of the long-term debt of $121.2 million. This suggests a sound financial position. Moreover, the total debt at the quarter end was $1.16 billion compared with $1.20 billion at the end of 2022.
What’s Ahead for the Stock?
A vast majority of Bruker BioSpin’s customers include academic and government customers as well as pharmaceutical and biotechnology companies. In 2023, the segment registered growth across the biopharma, academic, government, industrial research and applied markets and in the new integrated data solutions or IDS division. This trend is expected to continue further, driving growth. Per Precedence Research, the global preclinical imaging market was valued at $2.0 billion in 2022 and is likely to witness a CAGR of 4.3% up to 2032. We believe this translates into a golden opportunity for Bruker to expand its foothold in the PCI market and earn higher profits from this division.
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 5-7% on an organic basis. The Zacks Consensus Estimate for revenues is pegged at $3.12 billion.
Bruker expects its 2024 adjusted earnings per share to be in the range of $2.71-$2.76. The Zacks Consensus Estimate is pegged at $2.73.
Estimate Trends
In the past 90 days, the Zacks Consensus Estimate for the company’s 2024 earnings has moved 1.1% north to $2.74.
The Zacks Consensus Estimate for 2024 revenues is pegged at $3.27 billion, suggesting a 10.2% growth from the 2023 reported number.
Key Picks
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, carrying a Zacks Rank #2, reported second-quarter fiscal 2024 adjusted earnings of $1.82, which beat the Zacks Consensus Estimate by 16.7%. Revenues of $57.45 billion improved 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%.