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BRKR Misses on Q3 Earnings, Cuts '24 View, Stock Up in Aftermarket
BRKRBruker(BRKR) ZACKS·2024-11-07 16:50

Earnings Performance - Adjusted EPS for Q3 2024 was 60 cents, down 18.9% YoY, missing the Zacks Consensus Estimate by 1.6% [1] - GAAP EPS was 27 cents compared to 60 cents in the year-ago period [1] - Following the earnings announcement, BRKR stock rose 1.7% in aftermarket trading [2] Revenue Analysis - Q3 2024 revenues were 864.4million,up16.4864.4 million, up 16.4% YoY but missed the Zacks Consensus Estimate by 0.1% [3] - Organic revenue growth was 3.1%, excluding 12.5% from acquisitions and 0.7% from foreign currency impacts [3] - US revenues increased 13.2% YoY to 239.0 million, exceeding the model forecast of 233.9million[3]−Europerevenuesrose15.1233.9 million [3] - Europe revenues rose 15.1% YoY to 290 million, below the model forecast of 322.1million[4]−AsiaPacificrevenuesincreased14.4322.1 million [4] - Asia Pacific revenues increased 14.4% YoY to 262.4 million, below the model forecast of 267.7million[4]−Othercategoryrevenuessurged44.8267.7 million [4] - Other category revenues surged 44.8% YoY to 73 million, significantly above the model forecast of 26.9million[4]SegmentalPerformance−BSIsegmentrevenuesgrew18.226.9 million [4] Segmental Performance - BSI segment revenues grew 18.2% YoY to 799.5 million [5] - BioSpin Group revenues increased 17.5% YoY to 233million,belowthemodelforecastof233 million, below the model forecast of 247.3 million [6] - CALID revenues rose 16.8% YoY to 279.4million,slightlybelowthemodelforecastof279.4 million, slightly below the model forecast of 280.8 million [7] - NANO revenues climbed 20.3% YoY to 287.1million,abovethemodelforecastof287.1 million, above the model forecast of 260.8 million [7] - BEST segment revenues declined 2.7% YoY to 68.7million,belowthemodelforecastof68.7 million, below the model forecast of 77.3 million [8] Margin Trends - Gross profit increased 9.4% to 418.6million,butgrossmargincontracted308bpsto48.4418.6 million, but gross margin contracted 308 bps to 48.4% due to a 23.8% rise in costs [9] - SG&A expenses rose 30.2% to 229.9 million, and R&D expenses increased 37.6% YoY to 98.1million[10]−Adjustedoperatingexpensesgrew32.298.1 million [10] - Adjusted operating expenses grew 32.2% YoY to 328.0 million [10] - Adjusted operating profit declined 32.7% YoY to 90.8million,withtheadjustedoperatingmargincontracting766bpsto10.590.8 million, with the adjusted operating margin contracting 766 bps to 10.5% [10] Financial Position - Cash and cash equivalents stood at 148.1 million at the end of Q3 2024, down from 169.7millionattheendofQ2[11]−Totallong−termdebtincreasedto169.7 million at the end of Q2 [11] - Total long-term debt increased to 2.26 billion from 1.16billionattheendofQ2[11]−Cumulativenetcashflowfromoperatingactivitieswas1.16 billion at the end of Q2 [11] - Cumulative net cash flow from operating activities was 61.3 million, down from 144.6millioninthecomparableperiodlastyear[11]2024Guidance−Full−year2024revenueguidanceloweredto144.6 million in the comparable period last year [11] 2024 Guidance - Full-year 2024 revenue guidance lowered to 3.34-3.37billionfrom3.37 billion from 3.38-3.44billion,indicatingYoYgrowthof12.53.44 billion, indicating YoY growth of 12.5%-13.5% [12] - Adjusted EPS guidance for 2024 revised to 2.36-2.41from2.41 from 2.59-2.64[13]StrategicDevelopments−CompletedthreestrategicacquisitionsinH12024,acceleratingportfoliotransformationandmarketexpansionintospatialbiology,moleculardiagnostics,andlaboratoryautomation[15]IndustryComparison−PhibroAnimalHealth(PAHC)reportedQ4fiscal2024adjustedEPSof41cents,beatingestimatesby20.62.64 [13] Strategic Developments - Completed three strategic acquisitions in H1 2024, accelerating portfolio transformation and market expansion into spatial biology, molecular diagnostics, and laboratory automation [15] Industry Comparison - Phibro Animal Health (PAHC) reported Q4 fiscal 2024 adjusted EPS of 41 cents, beating estimates by 20.6%, with revenues of 273.2 million exceeding estimates by 4.1% [16][17] - Quest Diagnostics (DGX) reported Q3 2024 adjusted EPS of 2.30,beatingestimatesby1.82.30, beating estimates by 1.8%, with revenues of 2.49 billion exceeding estimates by 3.4% [17] - HealthEquity (HQY) reported Q2 fiscal 2025 adjusted EPS of 86 cents, surpassing estimates by 22.9%, with revenues of $299.9 million exceeding estimates by 5.4% [18][19]