Bruker(BRKR) ZACKS·2024-11-07 16:50Earnings 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 $864.4 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 $233.9 million [3] - Europe revenues rose 15.1% YoY to $290 million, below the model forecast of $322.1 million [4] - Asia Pacific revenues increased 14.4% YoY to $262.4 million, below the model forecast of $267.7 million [4] - Other category revenues surged 44.8% YoY to $73 million, significantly above the model forecast of $26.9 million [4] Segmental Performance - BSI segment revenues grew 18.2% YoY to $799.5 million [5] - BioSpin Group revenues increased 17.5% YoY to $233 million, below the model forecast of $247.3 million [6] - CALID revenues rose 16.8% YoY to $279.4 million, slightly below the model forecast of $280.8 million [7] - NANO revenues climbed 20.3% YoY to $287.1 million, above the model forecast of $260.8 million [7] - BEST segment revenues declined 2.7% YoY to $68.7 million, below the model forecast of $77.3 million [8] Margin Trends - Gross profit increased 9.4% to $418.6 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 $98.1 million [10] - Adjusted operating expenses grew 32.2% YoY to $328.0 million [10] - Adjusted operating profit declined 32.7% YoY to $90.8 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 $169.7 million at the end of Q2 [11] - Total long-term debt increased to $2.26 billion from $1.16 billion at the end of Q2 [11] - Cumulative net cash flow from operating activities was $61.3 million, down from $144.6 million in the comparable period last year [11] 2024 Guidance - Full-year 2024 revenue guidance lowered to $3.34-$3.37 billion from $3.38-$3.44 billion, indicating YoY growth of 12.5%-13.5% [12] - Adjusted EPS guidance for 2024 revised to $2.36-$2.41 from $2.59-$2.64 [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, 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]