On Apr 13, 2015, we issued an updated research report on Bruker Corporation BRKR, a developer of proprietary life science and materials research systems and associated products. Bruker exited the year 2014 on a disappointing note, delivering mixed fourth-quarter financial results. Earnings beat the Zacks Consensus Estimate but the top line fell short of the mark.
On a year-over-year basis, the company reported deteriorating results for both its top and bottom line, in the fourth quarter of 2014. However, on a brighter note, the fourth quarter results duly met the company's expectation.
Presently, we are encouraged by the company’s profitable scope of expansion in the nuclear magnetic resonance (NMR) as well as preclinical imaging (PCI) industries. Although Bruker’s performance in 2014 was affected by weak demand for its NMR products, management believes the overall healthy NMR market will help this segment to rebound. On an encouraging note, Bruker is optimistic that the new order bookings for its NMR products will continue to improve over the next few quarters.
In 2014, Bruker’s PCI division delivered an impressive performance generating double-digit top-line growth on the back of better operating leverage and the effective execution of productivity improvement initiatives. Currently, the company is investing vigorously in the PCI division to capture a larger share in this fast growing market space.
Unfortunately, a number of Bruker’s peers have expanded their market share in recent years through business combinations. As a result, Bruker faces subsequent competition from many large enterprises in a consolidating industry. Also, currency fluctuations remain a drag on Bruker’s top as well as bottom line.
Over the past 60 days, the Zacks Consensus Estimate declined a respective 8.5% and 11.3% to 75 cents and 86 cents per share for 2015 and 2016.
The stock currently carries a Zacks Rank #3 (Hold).
Key Picks from the Sector
Medical stocks such as AmerisourceBergen Corp. ABC, Almost Family Inc. AFAM and Affymetrix Inc. AFFX are worth a look. All these stocks sport a Zacks Rank #1 (Strong Buy).
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