What happened

After the company reported first-quarter financials and boosted full-year sales guidance, Bruker Corporation (NASDAQ:BRKR) shares rallied 12.6% on Friday.

So what

A manufacturer of instruments used in scientific research, Bruker Corp. reported first-quarter revenue of $461.4 million, up 6.9% from the year-ago quarter. The top line was nearly $11 million better than industry watchers had been modeling. The company also reported a 1.25% improvement in GAAP operating margin to 9.1%; it delivered adjusted earnings per share of $0.28, which was $0.04 higher than the year-ago quarter.

A rocket lifting off into the sky.


The sales increase was driven by a 5.5% increase in organic revenue and a 6% increase due to acquisitions. Those tailwinds were slightly held back by a 4.6% currency exchange headwind.

Management also struck a positive tone for the rest of the year, increasing its year-over-year revenue growth guidance to 7%-8%. It expects operating margins will improve 90 basis points from 2018 and adjusted earnings per share (EPS) will be between $1.57 and $1.61, up 12% to 15% from 2018.

Now what

It's good to see Bruker's executing well on its plans to kick-start growth and boost profitability, but there's more work to do. The company's energy and supercon technologies segment sales were essentially flat year over year at $44.6 million. Nevertheless, solid revenue growth, leveraged by expense management plans, should allow earnings to grow faster than sales, potentially rewarding investors throughout the remainder of 2019.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.