I am interested. And what about the HUGE volume yesterday? Seems like something is up.
From Value Line's latest (August 24) report:
"Operational factors that led to Bruker’s disappointing secondquarter earnings may have lingering effects on results for the remainder of the year. Share earnings were just $0.06, as the company experienced higher-thanexpected operational expenses associated with the ramping up of new product lines, especially in its CAM division. These outlays may well mitigate expense-reduction measures that are being implemented by management. Additionally, with Bruker’s target market in Germany not likely to experience a surge in spending anytime soon, we have lowered our 2012 earnings estimates to $0.46.
Assuming the resolution of current issues, Bruker’s high backlog levels may provide a nice boost to earnings over the next year. However, these backlog levels suggest that conversion and production efficiency remain relatively low. As ongoing efforts by management to improve margins and increase profitability have been offset by rising costs, we have scrutinized management’s newly revised
guidance figures and made adjustments accordingly. On a more positive note, improvements to backlog conversion rates should eventually take hold, which would lead to higher operating margins.
The continued development of innovative products has driven customer demand, and will help Bruker in
the long run. The second-quarter adjusted revenue growth rate was 10% year over year. This occurred despite an overall industry slowdown that was seemingly due to general economic weakness in
Europe and more specifically, Germany (roughly half of Bruker’s business is generated across the pond). If Bruker maintains its product development initiatives, and improves margins, the company should
find some room for growth.
The stock holds an unfavorable Timeliness rank of 5. The company faces several negative industrywide trends. Some long-term investors may find its competitive portfolio of products attractive. That said, long-term capital appreciation is only about average, even with the recent drop in share price that stemmed
from the earnings disappointment in the latest quarter."
George M. Lee August 24, 2012