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Sep 30, 2020

Bruker Q3 2020 Earnings Report

Bruker's financial performance strengthened in Q3 2020, with improved non-GAAP operating margin and EPS approaching Q3 2019 levels, despite challenges from the pandemic.

Key Takeaways

Bruker's Q3 2020 revenues were $511.4 million, a 1.9% decrease compared to Q3 2019. GAAP operating income was $81.2 million, with a margin of 15.9%. Non-GAAP operating income was $94.9 million, with a margin of 18.6%. GAAP EPS was $0.35, and non-GAAP EPS was $0.42. The declines were primarily due to softer instrument and superconductor demand amid the pandemic, partially offset by cost control measures.

Q3 2020 revenues decreased by 1.9% year-over-year to $511.4 million.

Organic revenue declined by 4.6% year-over-year.

GAAP operating income was $81.2 million, with a 15.9% margin.

Non-GAAP operating income was $94.9 million, with an 18.6% margin.

Total Revenue
$511M
Previous year: $521M
-1.9%
EPS
$0.42
Previous year: $0.43
-2.3%
Organic Revenue Growth
-4.6%
Revenue growth from acquisitions
0.3%
GAAP Operating Margin
15.9%
Previous year: 16.8%
-5.4%
Gross Profit
$248M
Previous year: $254M
-2.2%
Cash and Equivalents
$567M
Previous year: $296M
+91.4%
Free Cash Flow
$64.8M
Previous year: $36.2M
+79.0%
Total Assets
$2.88B
Previous year: $2.35B
+22.4%

Bruker

Bruker

Forward Guidance

Bruker expects that the pandemic and related economic slowdown will continue to have a negative year-over-year impact on the Company’s fourth quarter 2020 financial results. Fiscal Year 2020 (FY 2020) Guidance Remains Suspended.

Challenges Ahead

  • Pandemic and related economic slowdown will continue to have a negative year-over-year impact on the Company’s fourth quarter 2020 financial results.
  • Softer instruments demand by academic and industrial customers
  • Reduced demand for BEST superconductors
  • Challenging environment, with some academic and industrial customers still negatively impacted by the pandemic.
  • Fiscal Year 2020 (FY 2020) Guidance Remains Suspended.