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Jun 30, 2020
Bruker Q2 2020 Earnings Report
Bruker's financial performance declined due to COVID-19 related disruptions and softer global instrumentation demand.
Key Takeaways
Bruker's Q2 2020 revenues were $424.6 million, a 13.4% decrease compared to Q2 2019. GAAP EPS was $0.16, and non-GAAP EPS was $0.21. The company mitigated the negative impact on profitability through cost control measures.
Q2 2020 revenues declined 13.4% year-over-year to $424.6 million.
Organic revenue declined 12.7% year-over-year.
GAAP operating income was $37.9 million, with a GAAP operating margin of 8.9%.
Non-GAAP operating income was $49.0 million, with a non-GAAP operating margin of 11.5%.
Bruker
Bruker
Forward Guidance
Bruker's FY 2020 financial guidance remains suspended. The company anticipates a sequential improvement in financial results from the second quarter to the third quarter of 2020, despite expecting a negative year-over-year impact from the pandemic on Q3 results.
Positive Outlook
- Anticipates a sequential improvement in financial results from Q2 to Q3 2020.
- Operationally, they have executed well in challenging times.
- Were able to mitigate the negative impact of the pandemic on our profitability and cash flow through cost control and cost reduction measures.
- Continue to invest in our Project Accelerate initiatives.
- Bruker remains financially healthy and is well-positioned for anticipated improvements in business conditions in the second half of 2020.
Challenges Ahead
- FY 2020 financial guidance remains suspended.
- Continue to expect the pandemic to have a negative year-over-year impact on the Company’s third quarter 2020 financial results.
- Second quarter 2020 revenues declined less than the scenarios that we outlined during our last earnings call.
- The reported and organic revenue declines were primarily due to COVID-19 related disruptions worldwide and softer global instrumentation demand, due to the ongoing pandemic.
- Year-over-year declines in the Company’s GAAP and non-GAAP operating income, operating margins and diluted EPS were primarily due to lower revenues associated with COVID-19 disruptions and softer academic and industrial demand, partially offset by Bruker’s cost control and reduction measures.