The 10-second takeaway
For the quarter ended March 31 (Q1), Bruker beat expectations on revenues and missed estimates on earnings per share.
Compared with the prior-year quarter, revenue grew and GAAP earnings per share increased.
Gross margins contracted, operating margins dropped, net margins expanded.
Bruker booked revenue of $405.6 million. The nine analysts polled by S&P Capital IQ predicted a top line of $388.5 million on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $357.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.11. The seven earnings estimates compiled by S&P Capital IQ predicted $0.12 per share. GAAP EPS of $0.09 for Q1 were 29% higher than the prior-year quarter's $0.07 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 46.9%, 50 basis points worse than the prior-year quarter. Operating margin was 8.5%, 40 basis points worse than the prior-year quarter. Net margin was 3.7%, 50 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $434.8 million. On the bottom line, the average EPS estimate is $0.22.
Next year's average estimate for revenue is $1.80 billion. The average EPS estimate is $0.93.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 258 members out of 276 rating the stock outperform, and 18 members rating it underperform. Among 61 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 58 give Bruker a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Bruker is outperform, with an average price target of $17.44.
Over the decades, small-cap stocks like Bruker have provided market-beating returns, provided they're value-priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Get instant access to this free report.
- Add Bruker to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings. He is the co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.