Yahoo Finance Bruker (BRKR) Q1 Earnings Surpass Estimates, Margins Decline
Bruker Corporation BRKR delivered adjusted earnings per share (EPS) of 53 cents in the first quarter of 2024, down 17.2% year over year. The figure topped the Zacks Consensus Estimate by 15.2%.
The adjustments include expenses related to the amortization of purchased intangibles, acquisition-related costs and restructuring costs, among others.
GAAP EPS was 35 cents, down 32.7% from the year-earlier quarter’s figure of 52 cents.
Revenues in Detail
Bruker registered revenues of $721.7 million in the first quarter, up 5.3% year over year. The figure missed the Zacks Consensus Estimate by 0.3%.
Excluding the positive impacts of 3.8% from acquisitions and 0.1% negative impact from foreign currency rates, the company witnessed organic revenue growth of 1.6%.
On a geographic basis, the United States witnessed an 11.3% year-over-year rise in revenues to $194.8 million.
Europe revenues increased 10.1% year over year to $244.8 million while revenues in the Asia Pacific fell 7.3% to $222.7 million.
The Other category’s revenues moved up 24.8% year over year to $59.4 million.
Segmental Analysis
Bruker reports results under two segments — BSI (comprising BioSpin, CALID and Nano) and Bruker Energy & Supercon Technologies (BEST).
Revenues in the BSI segment rose 3.9% to $651.1 million in the first quarter of 2024.
Within the segment, BioSpin Group’s revenues rose 1.4% from the year-ago quarter’s levels to $182.8 million. BioSpin witnessed growth across biopharma, academic government and industrial research markets.
Bruker Corporation Price, Consensus and EPS Surprise
Bruker Corporation price-consensus-eps-surprise-chart | Bruker Corporation Quote
CALID’s revenues fell 3.7% year over year to $227.9 million. The downside was primarily due to the timing of shipments slipping from Q1 into Q2, as well as tough comps in the year-ago quarter.
Revenues of the Nano group climbed 14.7% to $240.4 million. The upside was led by strong revenue growth in academic government, industrial and semiconductor metrology.
The BEST segment’s revenues were $73.1 million, up 17.5% year over year.
Margin Trend
Bruker’s gross profit fell 1.9% to $352.8 million. The gross margin contracted 360 basis points (bps) to 48.9%, on a 13.3% rise in cost.
SG&A expenses rose 20.1% to $195.4 million. R&D expenses went up 18.4% year over year to $81.7 million. Adjusted operating expenses of $277.1 million increased 19.6% year over year.
The adjusted operating profit was $75.7 million, down 40.8% from the prior-year quarter’s levels. The adjusted operating margin contracted 819 bps to 10.5%.
Financial Position
Bruker exited the first quarter of 2024 with cash and cash equivalents of $340.1 million compared with $488.3 million at the end of the fourth quarter of 2023.
The total long-term debt (including the current portion) at the end of the first quarter of 2024 was $1.38 billion, up from $1.28 billion at the end of the fourth quarter of 2023.
At the end of the first quarter of 2024, the cumulative net cash flow from operating activities was $21.8 million compared with $87.5 million during last year’s comparable period.
2024 Guidance
Bruker updated the outlook for 2024.
For the full year, the company now expects revenues in the range of $3.29-$3.35 billion (up from the previously guided range of $3.23-$3.29 billion). The updated guidance indicates year-over-year revenue growth of 11-13% on a reported basis and growth of 5-7% on an organic basis. The Zacks Consensus Estimate for revenues is pegged at $3.27 billion.
BRKR expects its 2024 adjusted EPS in the range of $2.79-$2.84 (up from prior guidance of $22.71-$2.76). The consensus estimate for EPS is pegged at $2.74.
Our Take
Bruker ended the first quarter of 2024 on a mixed note, with earnings beating estimates and revenues missing the same. Bruker’s strong growth can be attributed to its fundamental commitment to innovations, delivering high-value solutions for customers and the ongoing portfolio transformation. The BioSpin segment witnessed growth across biopharma, academic government and industrial research. The upside in the NANO group was led by strong revenue growth in academic government, industrial and semiconductor metrology. The recent acquisition of Chemspeed Technologies AG and ELITech looks promising. The raised 2024 outlook raises optimism.
However, the CALID group declined primarily due to the timing of shipments slipping from Q1 into Q2, as well as tough comps in the year-ago quarter. Escalating costs and the contraction of gross and adjusted operating margins are discouraging.
Zacks Rank & Other Key Picks
Bruker currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader medical space that have announced quarterly results are Align Technology, Inc. ALGN, ResMed Inc. RMD and Boston Scientific Corporation BSX.
Align Technology, carrying a Zacks Rank of 2, reported first-quarter 2024 adjusted EPS of $2.14, beating the Zacks Consensus Estimate by 8.1%. Revenues of $997.4 million outpaced the consensus mark by 2.6%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Align Technology has a long-term estimated growth rate of 6.9%. ALGN’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 5.9%.
ResMed reported third-quarter fiscal 2024 adjusted EPS of $2.13, beating the Zacks Consensus Estimate by 10.9%. Revenues of $1.19 billion surpassed the consensus estimate by 1.9%. It currently sports a Zacks Rank of 1.
ResMed has a long-term estimated growth rate of 10.9%. RMD’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 2.8%.
Boston Scientific reported first-quarter 2024 adjusted EPS of 56 cents, beating the Zacks Consensus Estimate by 9.8%. Revenues of $3.86 billion surpassed the consensus estimate by 4.9%. It currently carries a Zacks Rank of 2.
Boston Scientific has a long-term estimated growth rate of 12.5%. BSX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 7.5%.
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