Earnings Beat: Bruker Corporation Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

By
Simply Wall St
Published
November 04, 2020
NasdaqGS:BRKR

Bruker Corporation (NASDAQ:BRKR) investors will be delighted, with the company turning in some strong numbers with its latest results. It was overall a positive result, with revenues beating expectations by 5.4% to hit US$511m. Bruker also reported a statutory profit of US$0.35, which was an impressive 32% above what the analysts had forecast. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Bruker

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NasdaqGS:BRKR Earnings and Revenue Growth November 4th 2020

After the latest results, the twelve analysts covering Bruker are now predicting revenues of US$2.15b in 2021. If met, this would reflect a notable 9.8% improvement in sales compared to the last 12 months. Statutory earnings per share are predicted to surge 50% to US$1.53. Before this earnings report, the analysts had been forecasting revenues of US$2.12b and earnings per share (EPS) of US$1.45 in 2021. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target was unchanged at US$48.55, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Bruker analyst has a price target of US$54.00 per share, while the most pessimistic values it at US$43.00. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Bruker's growth to accelerate, with the forecast 9.8% growth ranking favourably alongside historical growth of 5.5% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 8.9% next year. Factoring in the forecast acceleration in revenue, it's pretty clear that Bruker is expected to grow at about the same rate as the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Bruker's earnings potential next year. Happily, there were no real changes to sales forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at US$48.55, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Bruker analysts - going out to 2024, and you can see them free on our platform here.

You still need to take note of risks, for example - Bruker has 1 warning sign we think you should be aware of.

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This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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