NEW YORK (TheStreet) -- Bruker Corporation (BRKR) tumbled Friday after missing estimates on its top and bottom line. Shares plunged 15.2% once markets opened, recouping half its losses mid-morning before closing 6% lower to $19.23.
The medical technology company reported third-quarter earnings of 20 cents a share, 2 cents lower than analysts surveyed by Yahoo! Finance had expected. Revenue of $439 million, 2% lower than a year earlier, also missed estimates by $13.4 million.
"With continued weakness in industrial markets, our updated view is that the fourth quarter of 2013 will not be as strong as we originally expected and, as a result, we are taking additional near-term actions to reduce our headcount and lower our expense base," said CEO Frank Laukien in a statement.
The company announced plans to cut 150 positions, outsource a number of non-core manufacturing activities and close three manufacturing facilities by the end of the fourth quarter. These cost-reduction strategies will generate $15 to $20 million in savings over 2014, upgraded from a previous forecast of $10 million in savings. The Massachusetts-based manufacturer said it expects the fourth quarter to be weaker than the same period a year ago, but more profitable sequentially. Full-year revenue is expected to decrease 1% compared to full-year 2012, with earnings between 72 cents a share and 76 cents a share compared to the previous range of 80 cents to 83 cents. TheStreet Ratings team rates Bruker Corp as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation: "We rate Bruker Corp (BRKR) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, solid stock price performance, growth in earnings per share and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity." You can view the full analysis from the report here: BRKR Ratings Report
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