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Bruker (BRKR) Gains Market Share on Innovation Amid Macro Woes
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Bruker Corporation’s (BRKR - Free Report) strong growth reflects its fundamental commitment to innovate high-value solutions, and the ongoing portfolio transformation. However, macroeconomic issues dent profit. The stock carries a Zacks Rank #3 (Hold) currently.
Bruker’s CALID business has been gaining from the strong demand for differentiated instruments, particularly in life science mass spectrometry proteomics solutions and optics spectroscopy and microscopy instruments. Bruker’s flagship timsTOF platform is a key driver in life science mass spectrometry, further bolstered by the aftermarket business and the sustained growth in applied mass spectrometry and the optics infrared, near-infrared and Raman business.
In 2023, the company introduced timsTOF Ultra, which raised the bar further for sensitivity in unbiased proteomics with new technologies, next-generation ion source and next-generation TIMS technology.
In February 2024, Bruker acquired Nanophoton Corporation, a specialist in research Raman microscopy systems, which are mainly offered in Japan and Korea. Nanophoton boosted Bruker Optics’ molecular microscopy portfolio with a broad range of state-of-the-art Raman microscopy systems. Furthermore, the acquisition of Tornado Spectral Systems in January aims to significantly expand Bruker’s range of biopharma PAT (Process Analytical Technology) product portfolio. The company is also in the process of acquiring the molecular diagnostics innovator ELITechGroup, excluding its clinical chemistry business. The move will give Bruker access to modern sample-to-answer (S2A) systems and a broad infectious disease assay portfolio, including viral testing.
Within BSI (Bruker Scientific Instruments) NANO, the business is seeing robust revenue growth across its end markets, including academic, government, industrial and semiconductor metrology. Particularly, the NANO surface division and advanced X-ray and core tools are witnessing strong revenue growth. Bruker NANO Life Science fluorescence microscopy is gaining from product innovation and research demand, further bolstered by the addition of Inscopix’s neuroscience research tools.
During the first quarter of 2024, the group pursued a few strategic moves, like acquiring the optical cell imaging company Phasefocus Holdings Limited. Their microscopy capabilities will enhance Bruker’s existing portfolio, enabling new research advances in a range of cell imaging applications. The addition of Nion in January expands Bruker’s portfolio for materials science research with high-end STEM (scanning transmission electron microscope) technology.
On the flip side, Bruker generates a substantial portion of its revenues from the international markets, primarily Germany, Switzerland and other countries in the European Union, 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 first quarter of 2024, changes in foreign currency translation rates compared to the prior year period decreased revenues by 0.1%. The company’s updated 2024 outlook suggests an estimated foreign currency headwind of about 1%.
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. Any company conducting business in these nations tends to be 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 deter 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, a 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 the first quarter of 2024, the company’s gross margin contracted 360 basis points on a 13.3% rise in costs. SG&A expenses rose 20.1% from the prior-year levels.
Hims & Hers Heath stock has rallied 84.8% in the past year. Earnings estimates for the company have risen from 10 cents to 18 cents for 2024 and from 23 cents to 32 cents for 2025 in the past 30 days.
HIMS’ earnings beat estimates in three of the trailing four quarters and missed in one, delivering an average surprise of 79.2%. In the last reported quarter, it posted an earnings surprise of a staggering 150%.
Estimates for ResMed’s fiscal 2024 earnings per share have moved to $7.64 from $7.43 in the past 30 days. Shares of the company have decreased 3.2% in the past year compared with the industry’s fall of 1.3%.
RMD’s earnings surpassed estimates in three of the trailing four quarters and missed in one, the average surprise being 2.8%. In the last reported quarter, it delivered an earnings surprise of 10.9%.
Estimates for Medpace’s 2024 earnings per share have moved up to $11.29 from $10.53 in the past 30 days. Shares of the company have surged 87.6% in the past year compared with the industry’s 5% growth.
MEDP’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 12.8%. In the last reported quarter, it delivered an average earnings surprise of 30.6%.
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Bruker (BRKR) Gains Market Share on Innovation Amid Macro Woes
Bruker Corporation’s (BRKR - Free Report) strong growth reflects its fundamental commitment to innovate high-value solutions, and the ongoing portfolio transformation. However, macroeconomic issues dent profit. The stock carries a Zacks Rank #3 (Hold) currently.
Bruker’s CALID business has been gaining from the strong demand for differentiated instruments, particularly in life science mass spectrometry proteomics solutions and optics spectroscopy and microscopy instruments. Bruker’s flagship timsTOF platform is a key driver in life science mass spectrometry, further bolstered by the aftermarket business and the sustained growth in applied mass spectrometry and the optics infrared, near-infrared and Raman business.
In 2023, the company introduced timsTOF Ultra, which raised the bar further for sensitivity in unbiased proteomics with new technologies, next-generation ion source and next-generation TIMS technology.
In February 2024, Bruker acquired Nanophoton Corporation, a specialist in research Raman microscopy systems, which are mainly offered in Japan and Korea. Nanophoton boosted Bruker Optics’ molecular microscopy portfolio with a broad range of state-of-the-art Raman microscopy systems. Furthermore, the acquisition of Tornado Spectral Systems in January aims to significantly expand Bruker’s range of biopharma PAT (Process Analytical Technology) product portfolio. The company is also in the process of acquiring the molecular diagnostics innovator ELITechGroup, excluding its clinical chemistry business. The move will give Bruker access to modern sample-to-answer (S2A) systems and a broad infectious disease assay portfolio, including viral testing.
Bruker Corporation Price
Bruker Corporation price | Bruker Corporation Quote
Within BSI (Bruker Scientific Instruments) NANO, the business is seeing robust revenue growth across its end markets, including academic, government, industrial and semiconductor metrology. Particularly, the NANO surface division and advanced X-ray and core tools are witnessing strong revenue growth. Bruker NANO Life Science fluorescence microscopy is gaining from product innovation and research demand, further bolstered by the addition of Inscopix’s neuroscience research tools.
During the first quarter of 2024, the group pursued a few strategic moves, like acquiring the optical cell imaging company Phasefocus Holdings Limited. Their microscopy capabilities will enhance Bruker’s existing portfolio, enabling new research advances in a range of cell imaging applications. The addition of Nion in January expands Bruker’s portfolio for materials science research with high-end STEM (scanning transmission electron microscope) technology.
On the flip side, Bruker generates a substantial portion of its revenues from the international markets, primarily Germany, Switzerland and other countries in the European Union, 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 first quarter of 2024, changes in foreign currency translation rates compared to the prior year period decreased revenues by 0.1%. The company’s updated 2024 outlook suggests an estimated foreign currency headwind of about 1%.
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. Any company conducting business in these nations tends to be 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 deter 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, a 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 the first quarter of 2024, the company’s gross margin contracted 360 basis points on a 13.3% rise in costs. SG&A expenses rose 20.1% from the prior-year levels.
Key Picks
Some better-ranked stocks in the broader medical space are Hims & Hers Health (HIMS - Free Report) , ResMed (RMD - Free Report) and Medpace (MEDP - Free Report) . Each of them sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks Rank #1 stocks here.
Hims & Hers Heath stock has rallied 84.8% in the past year. Earnings estimates for the company have risen from 10 cents to 18 cents for 2024 and from 23 cents to 32 cents for 2025 in the past 30 days.
HIMS’ earnings beat estimates in three of the trailing four quarters and missed in one, delivering an average surprise of 79.2%. In the last reported quarter, it posted an earnings surprise of a staggering 150%.
Estimates for ResMed’s fiscal 2024 earnings per share have moved to $7.64 from $7.43 in the past 30 days. Shares of the company have decreased 3.2% in the past year compared with the industry’s fall of 1.3%.
RMD’s earnings surpassed estimates in three of the trailing four quarters and missed in one, the average surprise being 2.8%. In the last reported quarter, it delivered an earnings surprise of 10.9%.
Estimates for Medpace’s 2024 earnings per share have moved up to $11.29 from $10.53 in the past 30 days. Shares of the company have surged 87.6% in the past year compared with the industry’s 5% growth.
MEDP’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 12.8%. In the last reported quarter, it delivered an average earnings surprise of 30.6%.