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Bruker's Preliminary Q2 Revenues Miss Estimates, Stock Tumbles

NEW YORK (GenomeWeb News) – Bruker today announced preliminary second-quarter revenues of $420 million, falling short of analyst estimates of $434.5 million.

The company posted revenues of $401.2 million a year ago. Bruker is scheduled to report its second-quarter earnings on July 31.

Bruker added that EPS for the second quarter is expected to be in the range of $.05 and $.07, while adjusted EPS is expected to fall between $.11 and $.13, which would also miss a consensus Wall Street estimate of $.21.

The firm said that financial results for the quarter were adversely affected by a weaker Euro, softening customer demand, especially in Europe, and increases in spending.

News of the announcement drove down shares of Bruker 13 percent to $11.64 in Tuesday morning trading on the Nasdaq. Its shares had fallen as low as $9.91 earlier in the day.

Following the announcement, Jefferies analyst Jon Wood lowered EPS estimates for 2012 to $.75 from $.95 and 2013 EPS to $.85 from $1.10. Wood lowered the price target for Bruker's stock to $15.50 from $19.

William Blair analyst Amanda Murphy said in a research note, "While we believe that the stock had accounted for the impact of weaker sales (given the company's prior commentary), the adjusted EPS guidance implies meaningful sequential and year-over-year margin deterioration.

"The key to the story, in our view, was the margin expansion opportunity (management had guided to 120 to 140 basis points for the year) via continued integration of [its Chemical and Applied Markets division] as well as sourcing noncore products to lower-cost countries and a continued mix shift to new products with a lower cost base. Thus, we view this to be the most disappointing component of the preannouncement," she said.