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Sep 30, 2022

Bruker Q3 2022 Earnings Report

Bruker's financial performance for Q3 2022 showed revenue growth and improved profitability.

Key Takeaways

Bruker reported a 4.9% year-over-year increase in revenue, with organic revenue growth of 12.7%. The GAAP operating margin was 20.6%, while the non-GAAP operating margin reached 22.4%. GAAP EPS was $0.59, and non-GAAP EPS was $0.66, a 4.8% increase year-over-year. Due to strong year-to-date performance and a high backlog, the company is raising its FY 2022 guidance for organic revenue growth and non-GAAP operating margin expansion.

Reported revenue increased by 4.9% year-over-year, with organic revenue growth of 12.7%.

GAAP operating margin was 20.6%, while non-GAAP operating margin increased to 22.4%, up 180 basis points year-over-year.

GAAP EPS was $0.59, with non-GAAP EPS at $0.66, reflecting a 4.8% increase year-over-year.

Fiscal year 2022 guidance was raised for organic revenue growth and non-GAAP operating margin expansion.

Total Revenue
$639M
Previous year: $609M
+4.9%
EPS
$0.66
Previous year: $0.63
+4.8%
Organic Revenue Growth
12.7%
Previous year: 17.8%
-28.7%
GAAP Operating Margin
20.6%
Previous year: 18.6%
+10.8%
Non-GAAP Operating Margin
22.4%
Previous year: 20.6%
+8.7%
Gross Profit
$335M
Previous year: $309M
+8.6%
Cash and Equivalents
$626M
Previous year: $573M
+9.3%
Free Cash Flow
$11.8M
Previous year: $7.6M
+55.3%
Total Assets
$3.34B
Previous year: $3.13B
+6.7%

Bruker

Bruker

Forward Guidance

Bruker is increasing its FY 2022 organic revenue growth guidance, while lowering reported revenue growth guidance to account for stronger foreign currency headwinds. For FY 2022, Bruker now expects 1.5% to 3.5% year-over-year reported revenue growth, including organic revenue growth of 8% to 10%.

Positive Outlook

  • Organic revenue growth of 8% to 10% is expected.
  • M&A revenue contributions of approximately 1.5% are anticipated.
  • Non-GAAP operating margin expansion of 60 bps to 90 bps year-over-year is projected.
  • Non-GAAP EPS of $2.29 to $2.33 is expected, representing a 9% to 11% increase compared to FY 2021.
  • Strong backlog builds resiliency for Bruker in 2023 and beyond.

Challenges Ahead

  • Foreign currency translation headwinds of approximately 8% are expected.
  • Lowered reported revenue growth guidance to account for stronger foreign currency headwinds.
  • Supply chain challenges are expected to continue.
  • Geopolitical tensions are expected to persist.
  • Continued volatility in the capital markets is anticipated.