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Why Is Bruker (BRKR) Up 15.7% Since Last Earnings Report?
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It has been about a month since the last earnings report for Bruker (BRKR - Free Report) . Shares have added about 15.7% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Bruker due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Bruker Q4 Earnings Top Estimates, Margins Fall
Bruker Corporation delivered adjusted earnings per share 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 earnings per share 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. 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.
Bruker expects its 2024 adjusted earnings per share in the range of $2.71-$2.76. The Zacks Consensus Estimate is pegged at $2.73 per share.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
The consensus estimate has shifted -20.39% due to these changes.
VGM Scores
At this time, Bruker has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Bruker has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Bruker is part of the Zacks Instruments - Scientific industry. Over the past month, Mettler-Toledo (MTD - Free Report) , a stock from the same industry, has gained 10.5%. The company reported its results for the quarter ended December 2023 more than a month ago.
Mettler-Toledo reported revenues of $934.99 million in the last reported quarter, representing a year-over-year change of -11.6%. EPS of $9.40 for the same period compares with $12.10 a year ago.
Mettler-Toledo is expected to post earnings of $7.63 per share for the current quarter, representing a year-over-year change of -12.2%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.2%.
Mettler-Toledo has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.
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Why Is Bruker (BRKR) Up 15.7% Since Last Earnings Report?
It has been about a month since the last earnings report for Bruker (BRKR - Free Report) . Shares have added about 15.7% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Bruker due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Bruker Q4 Earnings Top Estimates, Margins Fall
Bruker Corporation delivered adjusted earnings per share 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 earnings per share 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. 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.
Bruker expects its 2024 adjusted earnings per share in the range of $2.71-$2.76. The Zacks Consensus Estimate is pegged at $2.73 per share.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
The consensus estimate has shifted -20.39% due to these changes.
VGM Scores
At this time, Bruker has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Bruker has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Bruker is part of the Zacks Instruments - Scientific industry. Over the past month, Mettler-Toledo (MTD - Free Report) , a stock from the same industry, has gained 10.5%. The company reported its results for the quarter ended December 2023 more than a month ago.
Mettler-Toledo reported revenues of $934.99 million in the last reported quarter, representing a year-over-year change of -11.6%. EPS of $9.40 for the same period compares with $12.10 a year ago.
Mettler-Toledo is expected to post earnings of $7.63 per share for the current quarter, representing a year-over-year change of -12.2%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.2%.
Mettler-Toledo has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.