Bruker (BRKR) Stock Falls After CFO's Resignation

NEW YORK (TheStreet) -- Shares of Bruker (BRKR) were falling 11.4% to $19.68 on heavy trading volume Thursday after the medical research instrument maker announced the resignation of CFO Charles F. Wagner, Jr.

Wagner will leave Bruker on June 12, 2015 and will take a similar role at Ortho-Clinical Diagnostics in late June. The company said Wagner's resignation is not the result of any dispute or disagreement with the company, or anything related to the company's accounting practices or financial statements.

Anthony L. Mattacchione, an executive officer and Bruker's Senior Vice President of Finance & Accounting, will serve as interim CFO as the company searches for a new CFO.

About 3.5 million shares of Bruker were traded by 10:41 a.m. Thursday, above the company's average trading volume of about 791,000 shares a day.

TheStreet Ratings team rates BRUKER CORP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate BRUKER CORP (BRKR) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and relatively poor performance when compared with the S&P 500 during the past year."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The current debt-to-equity ratio, 0.49, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.33, which illustrates the ability to avoid short-term cash problems.
  • Net operating cash flow has increased to $27.00 million or 45.94% when compared to the same quarter last year. In addition, BRUKER CORP has also vastly surpassed the industry average cash flow growth rate of -13.60%.
  • 49.76% is the gross profit margin for BRUKER CORP which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 1.83% trails the industry average.
  • The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and the Life Sciences Tools & Services industry average. The net income has significantly decreased by 25.3% when compared to the same quarter one year ago, falling from $8.70 million to $6.50 million.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. In comparison to the other companies in the Life Sciences Tools & Services industry and the overall market, BRUKER CORP's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • You can view the full analysis from the report here: BRKR Ratings Report

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