As Bruker Corporation (NASDAQ:BRKR) released its earnings announcement on 31 December 2018, analysts seem cautiously optimistic, with profits predicted to increase by 29% next year relative to the past 5-year average growth rate of 14%. Currently with trailing-twelve-month earnings of US$180m, we can expect this to reach US$231m by 2020. Below is a brief commentary around Bruker’s earnings outlook going forward, which may give you a sense of market sentiment for the company. For those keen to understand more about other aspects of the company, you can research its fundamentals here.
How is Bruker going to perform in the near future?
The longer term expectations from the 11 analysts of BRKR is tilted towards the positive sentiment. Broker analysts tend to forecast up to three years ahead due to a lack of clarity around the business trajectory beyond this. To reduce the year-on-year volatility of analyst earnings forecast, I’ve inserted a line of best fit through the expected earnings figures to determine the annual growth rate from the slope of the line.
By 2022, BRKR’s earnings should reach US$286m, from current levels of US$180m, resulting in an annual growth rate of 15%. This leads to an EPS of $1.8 in the final year of projections relative to the current EPS of $1.15. With a current profit margin of 9.5%, this movement will result in a margin of 13% by 2022.
Future outlook is only one aspect when you’re building an investment case for a stock. For Bruker, I’ve compiled three key factors you should look at:
- Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
- Valuation: What is Bruker worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether Bruker is currently mispriced by the market.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Bruker? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.