Bruker’s BRKR strong growth reflects its fundamental commitment to innovate high-value solutions and ongoing portfolio transformation. Yet, the company’s operations face the wrath of excessive currency exposure and general macroeconomic headwinds. The stock carries a Zacks Rank #3 (Hold) currently.
Favorable Factors For BRKR
The CALID segment has been gaining from the strong demand for differentiated instruments, particularly in life science mass spectrometry proteomics solutions and optics spectroscopy and microscopy instruments. In 2024, the CALID group generated strong growth in microbiology and infection diagnostics, driven by MALDI Biotyper and Optics IR, near IR and Raman molecular spectroscopy businesses. The newly acquired ELITech Molecular Diagnostics business also contributed, positioning Bruker as an emerging infectious disease specialist in the in-vitro diagnostics (IVD) market.
Within Bruker’s BSI Nano segment, the business is seeing robust revenue growth across its end markets, including academic, government, industrial and semiconductor metrology. NANO generated $1.1 billion in revenues in 2024, growing in high teens percentage at constant currency. The high-performance computing and AI mega trend are driving the success of semiconductor and advanced packaging tools business, contributing revenues of more than $125 million. In May, Bruker expanded its capabilities in spatial transcriptomics and gene expression analysis by acquiring substantially all of NanoString Technologies’ assets.
Further, Bruker is strategically progressing with its BioSpin’s products that have specific applications in structural proteomics, drug discovery, research, and food and materials science fields, providing customers with the ability to ascertain the structure, dynamics, and function of specific molecules, such as proteins, as well as characterize and determine the composition of mixtures. In 2024, the group’s revenues increased by a low-teens percentage in constant currency, driven by strong performance in Europe and the Americas. Industrial research, academic and government markets, and biopharma contributed significantly, alongside increasing demand for automation, service and software business.
Factors Impacting BRKR Stock's Growth
On the flip side, present global economic challenges and uncertainties have made it harder for Bruker to manage operations and predict financial outcomes. Geopolitical conditions, including conflicts in Russia and Ukraine, Israel, Palestine and surrounding areas, tensions between the United States and China, along with potential energy shortages in Europe increased energy and transportation costs, are impacting the company’s operational results. In addition, supply-chain risks associated with inflation, the threat of recession, currency volatility, and the worldwide shortage of semiconductor chips, components and raw materials such as copper also persist. All these issues are leading to higher costs and expenditures for the company and putting pressure on profitability.
Bruker Corporation Price
Bruker Corporation price | Bruker Corporation Quote
In the fourth quarter, Bruker’s cost of revenues increased by 14.6% from the comparable 2023 period. Selling, general and administrative (SG&A) expenses surged 17%.
Bruker generates a substantial portion of its revenues in the international markets, primarily in Germany and other countries in the European Union, Switzerland and Japan. As a result, currency fluctuations continue to result in foreign currency transaction losses at the company. In addition, currency fluctuations could cause the price of Bruker’s products to be less competitive than its principal competitors' offerings. In the fourth quarter, foreign currency translation had an unfavorable impact of 1.2% on the top-line growth.
Moreover, Bruker faces substantial competition in a consolidating industry and expects competition in all its markets to increase further. Bruker BioSpin competes with companies that offer magnetic resonance spectrometers, mainly JEOL and Oxford Instruments. In the field of preclinical imaging, Bruker BioSpin faces competitive threats from Perkin Elmer, Mediso, Trifoil, MR Solutions, RS2D, Visualsonics (Fuji Film) and others.
The stock has lost 31.1% in the past six months compared with the sector’s 2.2% fall. With the company currently focusing on core business expansion through innovations, new offerings and expansion into new markets, we expect the stock to gain momentum in the coming days.
Key Picks
Some better-ranked stocks in the broader medical space are Hims & Hers Health HIMS, Inspira Medical Systems INSP and Cardinal Health CAH. Each of these carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Estimates for Hims & Hers Health’s 2025 earnings per share have jumped 34.6% to 70 cents in the past 30 days. Shares of the company have surged 129.5% in the past year against the industry’s 14% fall. HIMS’ earnings surpassed estimates in two of the trailing four quarters, matched in one and missed on another occasion, the average surprise being 40.4%.
Inspira shares have declined 8.9% in the past year. Estimates for the company’s 2025 earnings per share have increased 6.4% to $2.16 in the past 30 days. INSP’s earnings beat estimates in each of the trailing four quarters, the average surprise being 332.5%. In the last reported quarter, it posted an earnings surprise of 55.4%.
Estimates for Cardinal Health’s fiscal 2025 earnings per share have increased 14.7% to $7.94 in the past 30 days. Shares of the company have jumped 11.8% in the past year against the industry’s 3.9% fall. CAH’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 9.6%. In the last reported quarter, it delivered an earnings surprise of 10.3%.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
