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Mar 31, 2020

Bruker Q1 2020 Earnings Report

Bruker's Q1 2020 financial performance was impacted by COVID-19, resulting in revenue decline.

Key Takeaways

Bruker reported a revenue decline of 8.1% year-over-year, with an organic revenue decline of 7.9%. GAAP EPS decreased to $0.07 from $0.20 in Q1 2019, and non-GAAP EPS decreased to $0.14 from $0.28 in Q1 2019. The company expects COVID-19 disruptions to negatively affect Q2 2020 financial results.

Q1 2020 revenue declined by 8.1% year-over-year.

Organic revenue declined by 7.9%.

GAAP EPS was $0.07, compared to $0.20 in Q1 2019.

Non-GAAP EPS was $0.14, compared to $0.28 in Q1 2019.

Total Revenue
$424M
Previous year: $461M
-8.1%
EPS
$0.14
Previous year: $0.28
-50.0%
Organic Revenue Growth
-7.9%
GAAP Operating Margin
3.9%
Previous year: 9.1%
-57.1%
Non-GAAP Operating Margin
7.6%
Previous year: 13.5%
-43.7%
Gross Profit
$192M
Previous year: $215M
-10.4%
Cash and Equivalents
$796M
Previous year: $299M
+166.2%
Free Cash Flow
$22.7M
Previous year: $3.6M
+530.6%
Total Assets
$2.96B
Previous year: $2.24B
+32.1%

Bruker

Bruker

Forward Guidance

Bruker anticipates that the pandemic will have a more significant negative impact on the Company’s second quarter 2020 financial results. Fiscal Year 2020 (FY 2020) Guidance Remains Suspended

Positive Outlook

  • Bruker is a healthy, essential company.
  • Life science tools and diagnostics markets are quite resilient.
  • Long-term funding trends in life science, biopharma and basic medical research, as well as in infectious disease diagnostics, are going to be strong as a result of the COVID-19 pandemic.
  • Bruker is well positioned for a gradually improving business environment in the second half of 2020.
  • Bruker continues to have a strong balance sheet and a very solid liquidity position.

Challenges Ahead

  • COVID-19 disruption expected to negatively affect Q2 2020 financial results.
  • First quarter 2020 results reflect the initial impact of the COVID-19 pandemic.
  • Expect a more pronounced year-over-year revenue decline in the second quarter.
  • Fiscal Year 2020 (FY 2020) Guidance Remains Suspended
  • Uncertain business conditions created by COVID-19.