IBO Stock Indexes Rise Against “Fiscal Cliff”
Equities were mostly higher in November despite concerns over the US budget deficit. Positive economic indicators included better-than-expected jobless claims and GDP growth, as well as rising housing prices and consumer confidence. On November 29, US third-quarter GDP growth was revised upward from 2.0% to 2.7%, primarily due to inventory investments. For the month, the Dow Jones Industrial Average slipped 0.5%, while the S&P and NASDAQ improved 0.3% and 1.1%, respectively. Year to date, the Dow, S&P 500 and NASDAQ are up 6.6%, 12.6% and 15.5%, respectively.
The IBO Stock Indexes were mostly higher, as the Diversified Instrumentation, Laboratory Instrumentation and Lab Consumables/Equipment Stock Indexes gained 3.6%, 2.7% and 0.9%, respectively. The Process/Metrology/Motion Instrumentation Stock Index slipped 1.5%.
Laboratory Instrumentation Stock Index
For the month, the Index grew 2.7% to close at 652.47. Twelve companies advanced, led by Sequenom, which jumped 57%, and six contracted. Year to date, the Index has risen 15.4%, with 11 companies trading higher and seven declining. Illumina has sustained the largest price increase, climbing 76%. Pressure BioSciences has fallen 20% and 67% for the month and year, respectively.
While several companies in the Index beat quarter EPS estimates, outlooks were mostly reduced. On November 1, Harvard Biosciences cut its projected full-year EPS by 22% to $0.13–$0.14. Shares slid 2.3%. On November 6, Bio-Rad Laboratories lowered its 2012 sales growth outlook. On November 7, Fluidigm cut its full-year sales growth estimate from 25%–30% to 24%–26%. Shares fell 3.8%. On the same day, Becton Dickinson (BD) projected fiscal 2013 EPS growth of 4%–5% to $5.58–$5.64, which was lower than consensus. Shares fell 3.7%. The company raised its quarterly dividend by 10% on November 20 to $0.50 per share. On November 29, the S&P downgraded BD’s credit rating from “A+” to “A” due to rising competition in medical technology.
Other companies reported more favorable outlooks. On November 5, Bruker raised its 2012 EPS guidance by 13% to $0.75–$0.79. Shares rose 15.2%. On November 8, Sequenom highlighted stronger-than-expected demand for MaterniT21 testing. Shares jumped 18.8% the next day. The company gained an additional 15.2% on November 21 as the American College of Obstetricians and Gynecologists recommended use of cell-free fetal DNA testing for patients at increased risk for aneuploidy. On November 15, Pressure BioSciences narrowed its quarterly EPS loss by 40% to $0.09. The company also closed $600,000 in short-term loans during the quarter.
In other financial news, on November 8, Thermo Fisher Scientific raised its quarterly dividend by 15% to $0.15 per share and authorized an additional $1 billion share repurchase program. Shares gained 1.6% the next day. On November 19, Goldman upgraded Bruker to “Buy” from “Neutral,” but downgraded Cepheid to “Neutral” from “Buy.” On November 26, Stephens upgraded Sequenom to “Overweight” from “Equal Weight.” On November 28, RW Baird cut Illumina to “Neutral” from “Outperform.”
Process/Metrology/Motion Instrumentation Stock Index
The Index fell 1.5% in November to 546.49. Five companies declined, and two improved. Zygo lost the most ground, falling 21%, while Nanometrics gained 5%. Year to date, the Index is up 11.7%, with three companies in positive territory and four losing value. Veeco Instruments had the largest price increase, having advanced 37%. SDIX has fallen 41%.
SDIX reported on November 12 a quarterly EPS loss of $0.08 from continuing operations, similar to a year ago. Shares rose 3.5% the next day. Zygo fell 10.9% on November 12 after missing fiscal first-quarter EPS expectations. On November 15, MTS Systems missed EPS estimates, leading shares down 6.1% the next day. It projected fiscal 2013 EPS to grow 5%–10%. Veeco fell 7.5% on November 15 after delaying its quarterly report due to revenue recognition issues.
Lab Consumables/Equipment Stock Index
The Index improved 0.9% to 654.73 for the month. Six companies increased in value, led by Enzo Biochem, which jumped 38%, while Pall fell 6%. Year to date, the Index has gained 14.9%, with all seven companies trading higher. Kewaunee Scientific has increased the most, climbing 50%.
Enzo Biochem jumped 20.9% on November 2 following a $48.6 million litigation award against Life Technologies (see IBO 11/15/12), which fell 3.3%. Life Technologies raised the lower end of its 2012 EPS outlook by $0.05 on November 1 to $3.95–$4.00. On November 5, QIAGEN kept its 2012 EPS estimate of $1.04–$1.06. Kewaunee Scientific rose 5.3% on November 28 after posting fiscal second-quarter EPS of $0.25, compared with a loss of $0.05 a year ago. On November 28, Pall cut its fiscal 2013 EPS outlook by 3% to $2.95–$3.15. Shares slipped 1.3% the next day. The firm was downgraded by BB&T Capital on November 26 from “Buy” to “Hold.”
Diversified Instrumentation Stock Index
The Index grew 3.6% in November to 154.72. Six companies grew in value, while Teledyne Technologies fell 2%. Mettler-Toledo had the highest return, up 10%. For the year, the Index has advanced 18.0%, with all companies in positive territory. AMETEK leads all companies with a 33% return.
On November 1, Mettler-Toledo narrowed the lower end of its EPS guidance by 3% to $9.30–$9.40. It expects 2013 EPS of $10.00–$10.30. On November 19, Agilent Technologies projected fiscal 2013 EPS to be $2.80–$3.10, compared with $3.12 in fiscal 2012. Shares fell 3.3% the next day. On November 21, Roper Industries completed a two-part $900 million senior notes debt offering.
International
This month, four Pacific Region companies traded higher, one was unchanged and Shimadzu slipped 2%. HORIBA grew the most, gaining 8%. For the year, four companies are up, led by Hitachi High-Technologies, which has risen 10%. JOEL and HORIBA are down 7% and 19%, respectively.
On November 6, HORIBA reported a 37% EPS decline to ¥24.23 ($0.31). The company cut its full-year consolidated net income forecast by 6%. Yet shares climbed 8.8% the next day. On November 10, Shimadzu reported EPS grew 21% to ¥8.80 ($0.11) for the first half of the fiscal year. EPS for the second half of the year are projected to fall 11% to ¥21.03 ($0.27). Shares fell 4.3% the next trading day. On November 13, Techcomp reported third-quarter EPS grew 6% to $0.53.
In November, seven European companies improved, three were unchanged and three contracted, led by Abcam, which fell 6%. Alpha MOS realized the largest price increase, climbing 52%, but is down 32% for the year. Year to date, nine companies have positive returns, and four have declined. Sartorius has gained the most value, rising 140%.
On November 20, Halma reported half-year adjusted EPS growth of 5% to £0.12 ($0.20) and raised its interim dividend by 7% to £0.04 ($0.06). On November 13, Oxford Instruments reported adjusted EPS growth of 20% to £0.34 ($0.53) for the first fiscal half year and raised its interim dividend by 10.1% to £.03 ($0.05).
Line Graph: IBO Instrument Industry Stock Index
Lab Instrument Stock Index S&P 500
Nov-10 589.00 283.04
Dec-10 565.27 301.52
Jan-11 657.02 308.36
Feb-11 661.02 317.14
Mar-11 661.90 317.88
Apr-11 703.32 326.93
May-11 721.22 322.52
Jun-11 712.55 316.63
Jul-11 676.63 309.83
Aug-11 635.47 292.24
Sep-11 577.75 271.27
Oct-11 602.13 300.49
Nov-11 569.85 298.97
Dec-11 565.27 301.52
Jan-12 628.98 314.66
Feb-12 634.89 327.43
Mar-12 644.38 337.69
Apr-12 637.19 335.16
May-12 593.81 314.16
Jun-12 605.89 326.59
Jul-12 608.43 330.70
Aug-12 622.96 337.24
Sep-12 645.40 345.41
Oct-12 635.37 338.57
Nov-12 652.47 339.54
2012 2011
Cos. Date Rept. FQ Adj.EPS Consensus Vs.Est. Grw. Adj.EPS
Laboratory Instrumentation
AFFX 5-Nov 3Q ($0.03) ($0.05) $0.02 63% ($0.08)
BDX 7-Nov 4Q $1.42 $1.40 $0.02 10% $1.29
BIO 6-Nov 3Q $1.27 $1.17 $0.10 -21% $1.61
BRKR 5-Nov 3Q $0.28 $0.15 $0.13 33% $0.21
FLDM 7-Nov 3Q ($0.18) ($0.21) $0.03 18% ($0.22)
HBIO 1-Nov 3Q $0.01 NA NA -50% $0.02
MOCO 7-Nov 3Q $0.13 NA NA -54% $0.28
SQNM 8-Nov 3Q ($0.26) ($0.24) -$0.02 -37% ($0.19)
TBIO 7-Nov 3Q ($0.04) ($0.03) -$0.01 -33% ($0.03)
Process/Metrology/Motion Instrumentation
MTSC 15-Nov 4Q $0.94 $1.01 -$0.07 0% $0.94
ZIGO 9-Nov 1Q $0.10 $0.33 -$0.23 -71% $0.35
Lab Consumables/Equipment
LIFE 1-Nov 3Q $0.92 $0.89 $0.03 -2% $0.94
PLL 28-Nov 1Q $0.68 $0.66 $0.02 3% $0.66
QGEN 4-Nov 3Q $0.24 $0.24 $0.00 9% $0.22
Diversified Instrumentation
A 7-Nov 4Q $0.86 $0.80 $0.06 2% $0.84
MTD 1-Nov 3Q $2.40 $2.25 $0.15 19% $2.01
. Market Value 52 Week Price Change Change EPS EPS LTD/ FY R&D/
Company: Exchange (US $000s) Low High 11/30/12 1Month YTD P/E 12Month FY Equity ROE Sales
Laboratory Instrumentation
Accelrys: o $496,849 6.36 9.59 $8.81 -2% 31% NM -0.26 -0.44 4% 1% 24%
Affymetrix: o $234,442 2.96 5.50 $3.33 5% -19% NM -0.19 -0.40 73% NM 24%
Becton, Dickinson and Company: n $15,520,998 70.05 80.56 $76.67 1% 3% 14 5.59 5.59 127% 28% 6%
Bio-Rad Laboratories: n $2,993,116 88.86 118.00 $104.49 3% 9% 16 6.34 6.26 48% 10% 9%
Bruker: o $2,442,580 9.91 17.10 $14.60 21% 18% 24 0.62 0.55 60% 15% 11%
Cepheid: o $2,144,421 28.12 46.00 $32.42 7% -6% NM -0.41 0.04 3% 1% 21%
Fluidigm: o $321,027 12.05 17.23 $14.24 -6% 8% NM -0.84 -1.81 1% NM 33%
Harvard Bioscience: o $113,464 3.45 4.70 $3.94 -2% 2% 56 0.07 0.13 21% 4% 5%
Illumina: o $7,116,951 25.65 55.39 $53.71 13% 76% 77 0.70 0.62 74% 8% 19%
Luminex: o $721,294 15.58 25.79 $17.22 7% -19% 64 0.27 0.34 4% 6% 18%
MOCON: o $83,370 14.04 20.40 $14.67 -3% -8% 32 0.46 0.98 24% 16% 6%
Pacific Biosciences: o $93,873 1.06 5.27 $1.68 29% -40% NM -1.72 -2.03 5% NM 225%
PerkinElmer: n $3,639,687 17.73 31.84 $31.65 2% 58% 1583 0.02 0.07 70% 0% 6%
Pressure BioSciences: o $2,175 0.15 0.97 $0.20 -20% -67% NM -0.61 -0.77 -1% NM 98%
Sequenom: o $558,647 2.65 5.83 $4.87 57% 9% NM -0.97 -0.75 194% NM 96%
Thermo Fisher Scientific: n $23,221,170 43.06 63.78 $63.55 4% 41% 21 2.96 3.46 64% 9% 3%
Transgenomic: o $53,734 0.68 1.39 $0.75 -17% -42% 8 0.09 -0.04 16% NM 7%
Waters: n $7,478,532 70.88 94.47 $84.55 3% 14% 18 4.70 4.69 68% 35% 5%
Process/Metrology/Motion Instrumentation
FEI Company: o $2,298,658 37.68 56.48 $55.03 0% 35% 20 2.79 2.51 7% 15% 9%
MKS Instruments: o $1,292,283 22.45 34.99 $24.25 3% -13% 20 1.24 2.45 4% 13% 7%
MTS Systems: o $782,061 36.85 55.00 $48.35 -4% 19% 15 3.21 3.21 11% 24% 4%
Nanometrics: o $343,570 12.39 20.99 $14.46 5% -21% 45 0.32 1.22 6% 14% 10%
SDIX: o $22,180 0.95 2.13 $1.08 -5% -41% NM -0.09 -0.01 1% NM 15%
Veeco Instruments: o $1,114,750 20.35 38.39 $28.46 -7% 37% 18 1.61 3.11 1% 17% 10%
Zygo: o $281,705 13.14 20.44 $14.79 -21% -16% 7 2.08 2.30 4% 25% 10%
Lab Consumables/Equipment
Enzo Biochem: n $108,087 1.33 3.12 $2.76 38% 23% NM -1.01 -1.01 0% NM 6%
Kewaunee Scientific: o $31,940 7.90 13.45 $12.28 9% 50% 13 0.94 0.40 36% 3% 1%
Life Technologies: o $8,747,682 37.97 51.47 $49.35 1% 27% 21 2.40 1.99 61% 8% 10%
Pall: n $6,905,450 49.79 65.82 $59.48 -6% 4% 12 5.04 2.71 56% 21% 3%
QIAGEN: o $4,478,813 13.20 19.41 $18.50 6% 34% 49 0.38 0.40 26% 4% 11%
Sigma-Aldrich: o $8,847,440 61.36 74.94 $72.52 3% 16% 20 3.70 3.72 24% 21% 3%
Techne: o $2,615,856 63.08 76.02 $70.90 5% 4% 24 3.00 3.04 1% 17% 9%
Diversified Instrumentation
Agilent Technologies: n $13,516,370 32.51 46.28 $38.29 6% 10% 12 3.27 3.27 67% 22% 10%
AMETEK: n $9,039,012 26.28 37.40 $37.33 5% 33% 14 2.60 2.37 70% 19% 3%
Danaher: n $38,531,720 45.06 57.15 $53.97 4% 15% 16 3.28 3.11 46% 11% 6%
Illinois Tool Works: n $28,820,917 45.48 63.33 $61.57 0% 32% 13 4.89 4.19 57% 21% 1%
Mettler-Toledo Int'l: n $5,911,872 142.82 190.02 $187.09 10% 27% 21 8.72 8.21 89% 35% 5%
Roper Industries: n $11,125,898 81.16 113.25 $111.53 2% 28% 24 4.64 4.34 66% 13% 4%
Teledyne Technologies: n $2,356,200 52.40 67.03 $63.00 -2% 15% 15 4.15 6.84 71% 15% 5%
Laboratory Instrumentation Stock Index 652.47 2.7% 15.4% 21 71% 11% 7%
Process/Metrology/Motion Instrumentation 546.49 -1.5% 11.7% 16 5% 16% 8%
Lab Consumables/Equipment Stock Index 654.73 0.9% 14.9% 18 41% 11% 7%
Diversified Instrumentation Stock Index 154.72 3.6% 18.0% 18 56% 16% 5%
Dow Jones Industrial Average 13,025.58 -0.5% 6.6%
S&P 500 1,416.18 0.3% 12.6%
NASDAQ Composite 3,010.24 1.1% 15.5%
. Price
Region Market Value Market Value 11/30/12 Change Change EPS EPS LTD/ FY R&D/
Company (US $000s) (Local 000s) (Local) 1Month YTD P/E 12Month FY Equity ROE Sales
Pacific Shares
Hitachi High-Technologies: t $3,057,383 ¥252,199,615 ¥1,831 5% 10% 14 ¥127.10 ¥103.71 11% 6% 4%
HORIBA: t $1,211,705 ¥99,951,967 ¥2,350 8% 1% 15 ¥161.47 ¥204.41 16% 9% 9%
JEOL: t $172,223 ¥14,206,442 ¥179 8% -7% 2 ¥115.60 ¥115.60 102% 63% 5%
Precision System Science: os $34,518 ¥2,847,312 ¥31,200 1% 8% NM -¥2,072 -¥2,072 43% NM 12%
Shimadzu: t $1,880,978 ¥155,159,480 ¥526 -2% -19% 18 ¥29.29 ¥30.79 19% 5% 3%
Techcomp: hk $78,827 HKD 610,916.25 HKD 2.59 0% 5% 69 $0.04 $0.04 7% 13% 1%
European Shares
Abcam: I $1,060,220 £660,723 £3.60 -6% -1% 27 £0.13 £0.13 9% 17% 4%
Halma: l $2,644,518 £1,648,048 £4.37 6% 32% 19 £0.24 £0.23 58% 22% 5%
Oxford Instruments: l $1,203,335 £749,911 £13.61 1% 43% 28 £0.49 £0.45 42% 20% 8%
Renishaw: l $2,060,337 £1,283,990 £17.64 0% 76% 18 £0.96 £0.96 29% 28% 14%
Scientific Digital Imaging: l $3,053 £1,903 £0.10 -5% -2% 100 £0.00 £0.00 0% 1% 10%
Spectris: l $36,504 £2,274,909 £19.23 11% 49% 17 £1.11 £1.07 64% 21% 7%
Alpha MOS: c $7,816 € 6,014 € 1.54 52% -32% NM -€ 0.05 -€ 0.14 16% NM 13%
Analytik Jena: g $77,013 € 59,257 € 10.87 10% 2% 40 € 0.27 -€ 0.03 19% NM 15%
Sartorius: g $1,800,358 € 1,385,280 € 74.00 15% 140% 27 € 2.77 € 2.44 102% 11% 6%
Tecan: s $858,214 CHF 795,398 CHF 69.5 0% 9% 18 CHF 3.83 CHF 4.36 5% 18% 12%
Datacolor: s $68,333 CHF 63,331 CHF 415.0 1% 5% 21 CHF 20.07 CHF 21.48 7% 0% 12%
Biotage: st $880 SEK 5,860 SEK 8.0 0% 54% 14 SEK 0.56 SEK 0.42 5% 6% 8%
Exiqon: no $56,850 DKK 326,336 DKK 8.9 -6% -8% NM -DKK 0.35 -DKK 0.71 1% NM 21%
