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Bruker Strong on Strategic Initiatives, Currency Hampers Growth

On Sep 8, 2015, we issued an updated research report on Massachusetts-based Bruker CorporationBRKR , which designs and manufactures proprietary life science and materials research systems and associated products.

Bruker delivered mixed financial results during the second quarter of 2015. Although the company was successful in beating the Zacks Consensus Estimate on both the top and bottom-line fronts, the numbers declined on a year-over-year basis. Despite market weakness and currency headwind hurting Bruker's financial performance, management is currently focused on expanding its operational initiatives in 2015.

On a positive note, Bruker has been pursuing a number of strategies like divestiture of certain non-core businesses, outsourcing of various manufacturing activities and transferring or ceasing operations at certain facilities, to improve its financial performance. Lately, Bruker successfully completed its CAM restructuring program, one quarter ahead of management's expectation. As a result of the CAM restructuring and other strategic initiatives, Bruker announced that management expects its adjusted operating margin to increase by over 100 basis points in 2015. We believe such initiatives should benefit the company's future operating results.

Moreover, with the gaining popularity of Nuclear Magnetic Resonance (NMR) spectroscopy, Bruker's BioSpin products, which cater to diverse customers including academic and government customers as well as pharmaceutical and biotechnology companies, are making considerable progress. Further, Bruker's recent launch of the next-generation gigahertz NMR technology is expected to ramp up the company's top-line growth in 2016 and beyond.

On the flip side, unfavorable foreign currency fluctuations continue to hamper Bruker's growth trajectory. Evidently, changes in foreign exchange rates impacted Bruker's revenues by 12% and earnings by 5 cents per share in the second quarter. Moreover, headwinds such as unfavorable economic conditions and competitive threats continue to pose concern.

Currently, the stock carries a Zacks Rank #3 (Hold).

Key Picks in the Sector

Better-ranked medical stocks include ICU Medical, Inc. ICUI , NuVasive, Inc. NUVA and OraSure Technologies, Inc. OSUR . All the three stocks sport a Zacks Rank #1 (Strong Buy).

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ORASURE TECH (OSUR): Free Stock Analysis Report

NUVASIVE INC (NUVA): Free Stock Analysis Report

BRUKER CORP (BRKR): Free Stock Analysis Report

ICU MEDICAL INC (ICUI): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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