Bruker Reports Second Quarter 2018 Financial Results

Bruker Corporation announced financial results for its second quarter and six months ended June 30, 2018. Bruker’s revenues for the second quarter of 2018 were USD 443.7 million, an increase of 6.9 percent compared to the second quarter of 2017. In the second quarter of 2018, Bruker’s year-over-year organic revenue growth was 2.9 percent. Favorable foreign currency translation contributed 3.3 percent to revenue growth, while growth from acquisitions was 0.7 percent. Second quarter 2018 Bruker Scientific Instruments (BSI) segment revenues of USD 402.4 million increased 11.0 percent, compared to the second quarter of 2017, including organic growth of 7.1 percent. Second quarter 2018 BEST segment revenues of USD 42.7 million declined 20.9 percent, compared to the second quarter of 2017, including an organic decline, net of intercompany eliminations, of 25.6 percent.

Second quarter 2018 GAAP operating income was USD 48.8 million, compared to USD 35.3 million in the second quarter of 2017. Non-GAAP operating income was USD 58.9 million, compared to USD 53.5 million in the second quarter of 2017. On a non-GAAP basis, Bruker’s second quarter 2018 operating margin of 13.3 percent increased 40 basis points, compared to 12.9 percent in the second quarter of 2017, as operational improvements were offset to a significant extent by a strong unfavorable impact from changes in foreign currency rates.

Second quarter 2018 GAAP diluted earnings per share (EPS) were USD 0.20, compared to USD 0.15 in the second quarter of 2017. Second quarter 2018 non-GAAP diluted EPS were USD 0.25, compared to USD 0.23 in the second quarter of 2017.

For the first six months of 2018, Bruker’s revenues increased 9.5 percent to USD 875.4 million, from USD 799.8 million in the first six months of 2017. In the first six months of 2018, Bruker’s year-over-year organic revenue growth was 3.4 percent. Favorable foreign currency translation contributed 5.5 percent to revenue growth, while growth from acquisitions was 0.6 percent.

In the first six months of 2018, BSI segment revenues of USD 789.4 million increased 11.4 percent, compared to the first six months of 2017, including organic growth of 5.5 percent. BEST segment revenues in the first six months of 2018 of USD 88.3 million declined 6.2 percent compared to the first six months of 2017, including an organic decline, net of intercompany eliminations, of 12.6 percent.

In the first six months of 2018, GAAP operating income was USD 86.9 million, compared to USD 72.9 million in the first six months of 2017. Non-GAAP operating income was USD 111.8 million, compared to USD 102.7 million in the first six months of 2017. On a non-GAAP basis, Bruker’s operating margin in the first six months of 2018 was 12.8 percent, unchanged from the first six months of 2017, as healthy year-over-year operational margin improvements were offset primarily by a strong unfavorable impact from changes in foreign currency rates.

In the first six months of 2018, GAAP EPS were USD 0.37, compared to USD 0.28 in the first six months of 2017. Non-GAAP EPS for the first six months of 2018 were USD 0.49, an increase of 19.5 percent over USD 0.41 in the first six months of 2017.

Frank Laukien, President and CEO of Bruker, commented: “Bruker had a solid second quarter with good 7 percent organic revenue growth in our core Scientific Instruments segment, and an expected decline in BEST revenue.  For the first half, our non-GAAP operating margin expanded over 100 basis points on a constant currency basis, and our non-GAAP EPS has increased about 20 percent year-over-year.  Given our year-to-date results and favorable bookings trends, we remain confident in our ability to deliver on our financial guidance for the full year 2018.” He continued, “In the second quarter, we have introduced compelling new products in areas with high growth potential, including our scimaX magnetic resonance mass spectrometer for metabolomics, new ultra-high sensitivity and high-throughput workflows for our timsTOF Pro for proteomics, and our novel CE-IVD marked “Bologna workflow” for the fast and cost-effective identification of bloodstream infections and selected antibiotic resistance mechanisms. We remain focused on our dual strategy of portfolio transformation and operational excellence, and we are optimistic about our Project Accelerate high-growth, high-margin initiatives.”

FY2018 financial outlook

For FY 2018, the company now expects revenue growth of approximately 6.5 percent, including the following updates to prior guidance:

• organic revenue growth of approximately 3.5 percent, an increase of 50 basis points (bps);
• growth from acquisitions of approximately 1 percent, an increase of 100 bps; and
• a foreign currency revenue tailwind of approximately 2 percent, a decrease of 200 bps.

The Company continues to expect an increase in FY 2018 non-GAAP operating margin ranging from 50 bps to 80 bps year-over-year, including an estimated 70 bps headwind from foreign currency translation. Bruker also continues to expect non-GAAP EPS between USD 1.34 and USD 1.38 for FY 2018, an 11 percent to 14 percent increase compared to FY 2017. – Medical Buyer Bureau