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Bruker Q3 Earnings: Can NasdaqGS:BRKR Hit Its $0.31 EPS Target?

in EARNINGS/INVESTING IDEAS by

Bruker Corporation (NasdaqGS:BRKR) is scheduled to report Q3 earnings results after markets close for trading on November 2, 2020.

The company is expected to report earnings of $0.31/share on revenue of $483.8 million. The consensus earnings per share (EPS) of $0.31/share is based on a poll of 13 analysts and represents a decline in eps of −27.2% over the same quarter last year, when the company reported earnings of $0.43/share.

The revenue forecast of $483.8 million based on a poll of 11 analysts implies a year-over-year (YoY) decline in revenue of −7.2%. Last year the company reported $521.1 million in revenue for the quarter.

Expected to report EPS contraction of −27.2% for Q3, 2020
Metric Expected Prior Year YoY Change
Revenue $483.82 $521.10 −7.2%
EPS $0.31 $0.43 −27.2%

Earnings Call Trends

Historically, management has exceeded analyst expectations 5 out of the last 8 tracked quarters, missed 2 quarters, and met expectations 1 quarter.

What are your expectations from Bruker Corporation for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2020 $0.05 $0.21 290.0% Beat
Q1, 2020 $0.22 $0.14 −36.6% Missed
Q4, 2019 $0.59 $0.53 −10.8% Missed
Q3, 2019 $0.38 $0.43 13.5% Beat
Q2, 2019 $0.30 $0.33 11.2% Beat
Q1, 2019 $0.24 $0.28 16.4% Beat
Q4, 2018 $0.54 $0.54 0% Met
Q3, 2018 $0.30 $0.37 23.1% Beat

In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending June 30, 2020, the stock price did not react much to the update.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
August 3, 2020 $44.62 $44.69 0.2% Increase
May 6, 2020 $37.45 $39.79 6.2% Increase
March 27, 2020 $40.15 $36.87 −8.2% Decline
October 31, 2019 $44.57 $50.10 12.4% Increase

The other question to consider is one of earnings manipulation. There is a lot of pressure on management each quarter to deliver on earnings expectations. The Beneish M-Score is a statistical model that provides some insight into whether the company might be manipulating earnings. With a Beneish M-Score of −2.77, the model suggests that the company is not likely to be an earnings manipulator. A value of −2.77 implies a 0.3% chance of earnings manipulation.

Fundamentals And Technical Analysis

Bruker Corporation is currently trading at $42.06/share, down −0.9% for the day. The company is trading at approximately 77.2% of its 52-week high of $54.49/share. The company’s stock price is down −5.9% since the last earnings report and up 1.2% over the previous week.

The company’s 14 Day Relative Price Index (RSI) of 54.02 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.


NasdaqGS:BRKR Stock Price Chart
Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of 39.14 and a forward P/E multiple of 34.66.

Bruker Corporation’s current share price also implies a price-to-book (P/B) multiple of 7.17. The following table summarizes some other key fundamental ratios:

Data as of October 27, 2020
Metric Value
Last Reported Fiscal Period Key FY2020.Q2
Period End Date June 30, 2020
Stock Price (Current) $42.06
P/E Ratio 39.1x
P/E Ratio (Fwd) 34.7x
PEG Ratio −3.3
Total Debt / Total Capital 14.3%
Levered Free Cash Flow $140.2 million
EV / EBITDA 20.3x

Finbox

Bruker Corporation is a mid-cap stock with a market capitalization of $6.439 billion and a total enterprise value of $6.731 billion. The company operates in the Healthcare sector and the Life Sciences Tools & Services industry.

Bruker Corporation manufactures and distributes scientific instruments, and analytical and diagnostic solutions in the United States, Europe, the Asia Pacific, and internationally. The company operates in three segments: Bruker Scientific Instruments (BSI) Life Science, BSI NANO, and Bruker Energy & Supercon Technologies. It offers life science tools based on magnetic resonance technology; life science mass spectrometry and ion mobility spectrometry solutions; analytical and process analysis instruments and solutions based on infrared and Raman molecular spectroscopy technologies; and radiological/nuclear detectors for chemical, biological, radiological, nuclear, and explosive detection The company also provides X-ray instruments, atomic force microscopy instrumentation, fluorescence optical microscopy instruments, analytical tools for electron microscopes and X-ray metrology, defect-detection equipment for semiconductor process control, and spark optical emission spectroscopy systems, as well as handheld, portable, and mobile X-ray fluorescence spectrometry instruments. In addition, it offers superconducting and non-superconducting materials and devices. The company serves pharmaceutical, biotechnology, and diagnostics companies; chemical, food and beverage, clinical, and polymer companies; nonprofit laboratories; contract research organizations, academic institutions, medical schools, nonprofit or for-profit forensics, environmental and clinical microbiology laboratories, and hospitals and government departments and agencies, as well as agriculture, and food and beverage safety companies; nanotechnology, semiconductor, and industrial companies; and raw material manufacturers and other businesses through direct sales forces, distributors, independent sales representatives, and other representatives. Bruker Corporation has collaboration with Inscopix. Bruker Corporation was incorporated in 1991 and is headquartered in Billerica, Massachusetts.

Expertise: financial technology, analyzing market trends. Brian is a founder at finbox.io, where he’s focused on building tools that make it faster and easier for investors to research stock fundamentals. Brian’s background is in physics & computer science and previously worked as a software engineer at GE Healthcare. He enjoys applying his expertise in technology to help find market trends that impact investors. Brian can be reached at brian@finbox.io or at +1 (516) 778-6257.

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