With a slight uptick in inflation, improved manufacturing and strong employment reported in November, the US Federal Reserve has now targeted the beginning of December for a potential rate hike. In addition, US third quarter GDP growth was revised upwards 60 basis points to 2.1% due to increased inventory buildup. However, the stronger inventories may negatively impact fourth quarter economic growth. For the month, the Dow Jones Industrial Average, S&P 500 and NASDAQ advanced 0.3%, 0.1% and 1.1%, respectively. Year to date, the Dow is down 0.6%, while the S&P 500 and NASDAQ are up 1.0% and 7.9%, respectively.

Laboratory Instruments and Products

The Index jumped 9.1% in November to close at 239.42 and is up 7.6% for the year. All companies traded higher for the month except MTS Systems and VWR, which fell 3.6% and 3.0%, respectively. VWR slipped 2.3% on November 5 after the company reaffirmed its 2015 adjusted EPS of $1.42–$1.50. Shares also contracted 6.0% on November 11 after the company announced a public offering of nine million shares by a stockholder.

Four companies climbed more than 20% for the month, including Pacific Biosciences, which jumped 44.1% to lead the Index. The company has surged 179.5% since launching its new sequencing systems on September 30 (see IBO 10/15/15). Illumina, which climbed 28.4% for the month, was added to the S&P 500 after the close on November 18. The company also announced a new $250 million share repurchase authorization on November 2.

Bruker and Enzo Biochem jumped 23.2% and 22.3%, respectively. On November 17, Enzo announced the approval of its first AmpiProbe-based assay in New York. On November 4, Bruker posted third quarter sales and adjusted EPS well ahead of analysts’ expectations due to a recovery for NMR, timing of orders and completed restructuring activity. The company raised its 2015 adjusted EPS from roughly $0.75 to $0.75–$0.80. The company also announced on November 13 a new $225 million share repurchase program.

Several other companies benefited from positive earnings reports. Luminex easily beat analysts’ adjusted third quarter EPS consensus on November 2 due to strong sales volume and significant cost control measures. The company raised its 2015 revenue guidance from $232–$236 million to $235–$238 million. Shares advanced 11.9% the next day and ended the month up 18.2%.

Agilent Technologies beat analysts’ fiscal fourth quarter adjusted EPS consensus on November 16 but projected a conservative 2016 EPS outlook just below analysts’ consensus. The company projected fiscal 2016 adjusted EPS of $1.85–$1.91, including fiscal 2016 first quarter EPS of $0.42–$0.44. On November 19, the company raised its quarterly dividend by 15% to 11.5 cents. Shares expanded 10.8% for the month.

Both Becton, Dickinson (BD) and Mettler-Toledo, which improved 5.4% and 10.2% for the month, respectively, reported better-than-expected quarterly revenues and adjusted EPS results. On November 4, BD updated its fiscal 2016 adjusted EPS outlook of $8.73–$8.80 to include acquisitions. The company also raised its quarterly dividend by 10% on November 23 to $0.66 per share. On November 5, Mettler raised the bottom range of its 2015 adjusted EPS by $0.10 to $12.85–$12.90.

NanoString Technologies and PerkinElmer each declined following their earnings reports but ended the month up 5.0% and 2.9%, respectively. On November 2, NanoString beat analysts’ third quarter adjusted EPS expectations, and reduced its projected 2015 operating loss from $41–$47 million to $40–$44 million. However, the company lowered its fourth quarter consumables revenue growth forecast and projected full-year Prosigna kit sales to be less then $2.5 million. Shares contracted 8.0% the following day.

On November 5, PerkinElmer posted third quarter sales slightly above analysts’ consensus and adjusted EPS in line expectations. The company narrowed its 2015 adjusted EPS range by $0.01 to $2.56–$2.59. Shares traded modestly lower the following day.

In spite of a significant third quarter revenue miss due to disruptions from new software adoption (see page 10), Bio-Rad Laboratories posted adjusted EPS ahead of analysts’ consensus on November 4 as a result of cost saving measures. The company lowered its currency-neutral 2015 revenue growth outlook from 3% to 1.0%–1.5%. Shares were roughly flat for the month.

In other news, on November 24, Fluidigm announced that its Juno system was selected as one of TIME magazine’s best inventions of 2015, leading share up 3.7%. For the month, Fluidigm climbed 5.2%.

On November 12, Thermo Fisher Scientific announced a new $1 billion share repurchase authorization, replacing its existing repurchase plan with roughly $410 million remaining. On November 13 and November 30, the company priced a €425 million ($456 million) euro-denominated and $450 million senior notes offering, respectively, a majority of which will be used to redeem current outstanding debt.

Diversified Instrumentation

The Index grew 2.0% in November to 191.49 and is up 4.1% for the year. All companies traded higher for the month, led by Roper Technologies, which improved 3.8%.

Teledyne Technologies, which grew 3.7% for the month, announced an accelerated share repurchase authorization on November 3. The company plans to repurchase roughly 1.1 million shares for an estimated value of $100 million by the first quarter of 2016. This authorization is part of the company’s previously announced 2.5 million share repurchase program.

On November 11, AMETEK increased its share repurchase authorization by $350 million. The company’s existing repurchase plan had roughly $90 million remaining. Shares advanced 3.0% for the month.

International

Asia Pacific equity markets were mixed in November. China’s Shanghai Composite and Japan’s Nikkei 225 climbed 1.9% and 3.5%, respectively. Meanwhile, Singapore’s STI and Hong Kong’s Hang Seng Index contracted 4.7% and 2.8%, respectively.

Prices for the Pacific Region companies in the IBO Stock Table were mixed this month. JEOL climbed 12.7% to lead all companies. On November 11, the company reported that fiscal 2015 second quarter EPS more than tripled to ¥14.62 ($0.12). JEOL maintained its fiscal year 2016 EPS forecast of ¥41.38 ($0.34).

Shimadzu, which improved 5.1% for the month, reported on November 6 that fiscal 2016 half-year EPS soared 60% to ¥34.92 ($0.29). The company raised its 2016 EPS outlook 15% to ¥78.00 ($0.65) for growth of 25%. On November 2, GL Sciences reported that EPS for the first half of fiscal year 2016 jumped 48% to ¥21.50 ($0.18), including strong contributions from currency. Shares advanced 1.7% for the month.

HORIBA, Precision System Science (PSS) and Techcomp each declined in November, falling 4.3%, 5.4% and 5.3%, respectively. On November 6, HORIBA reported that third quarter EPS climbed 49% to ¥47.47 ($0.39). The company also raised its full-year 2016 net income forecast 3% to ¥12.3 billion ($102.5 million) as a result of currency. On November 13, PSS reported that fiscal 2016 first quarter EPS loss widened 10% to ¥9.82 ($0.08). Techcomp reported on November 13 that third quarter EPS contracted 67% to $0.04 despite revenue growth of 3.5% (see page 12).

Most European equity markets traded higher in November despite the terrorist attacks in Paris. Investors’ focus was primarily on the European Central Banks pledge to maintain stimulus spending and support inflation. The German XETRA DAX recorded the strongest gain, climbing 4.9%. The London FTSE 100 slipped 0.1%. Prices for all European companies in the IBO Stock Table were in positive territory except for Abcam and Datacolor, which contracted 4.2% and 16.0%, respectively.

Scientific Digital Imaging recorded the highest price increase, climbing 42.4% for the month. Oxford Instruments also charted a strong gain, rising 26.9% for the month. On November 10, the company reported that adjusted EPS grew 2% to 21.3 pence ($0.33) for the fiscal 2016 half year due to restructuring and cost control measures. Halma, which advanced 13.4% for the month, reported on November 17 that half-year 2016 adjusted EPS grew 8% to 15.19 pence ($0.23). The company also raised its interim dividend by 7% to 4.98 pence ($0.08).

In a trading update published on November 20, Spectris reported that organic sales for the four months ending October 3 fell 1% organically, including a progressive decline in revenues for the period. However, organic sales for the Materials Analysis, and Test and Measurement segments improved. N+1 Singer upgraded the company on November 26 from “Sell” to “Hold.” Shares expanded 6.7% for the month.

Merck KGaA, which completed its Sigma-Aldrich acquisition this month (see page 2), reported on November 12 that third quarter EPS grew 15% to €1.32 ($1.47). Earnings for the company benefited from operational improvements, including lower R&D spending from certain discontinued clinical development projects. Shares improved 9.1%.

In other financial news, on November 12, Exiqon announced a DKK 40 million ($5.7 million) senior notes offering to be primarily used to expand the company’s RNA product offerings and development of its cloud platform.