IBO Indexes Slide on Greece News
Greece has set the stage for a modern-era economic tragedy, as the country decides whether to abide by the bailout agreement or exit the Eurozone. An even graver concern is the fate of other European debt-ridden countries. These concerns coupled with softer US manufacturing growth, declining US consumer confidence and continued weakness in the US housing market sent the Dow Jones Industrial Average, S&P 500 and NASDAQ down 6.2%, 6.3% and 7.2% in May, respectively. Year to date, the Dow, S&P 500 and NASDAQ are still up, having gained 1.4%, 4.2% and 8.5%, respectively.
Following the general market trend, all four IBO Stock Indexes traded lower this month. The Process/Metrology/Motion Instrumentation, Laboratory Instrumentation, Lab Consumables/Equipment and Diversified Instrumentation Stock Indexes slumped 7.2%, 6.8%, 5.2% and 3.7%, respectively.
Laboratory Instrumentation Stock Index
X-Rite was removed from the Index following the completed tender offer by Danaher on May 15 (see IBO 4/30/12). For May, the Index fell 6.8% to 593.81. Seventeen companies declined, while Affymetrix improved 7%. For the year, the Index has advanced 5.0%, with 11 companies trading higher and seven in negative territory. Illumina maintains the largest gain, having climbed 41%. Pressure BioSciences recorded the largest decline for both the month and year, having lost 44% and 50% of its value, respectively.
On May 1, Bruker reported first-quarter results. Shares jumped 6.9%. Affymetrix climbed 4.8% on May 3 after beating estimates. On May 1, Becton Dickinson (BD) raised its full-year EPS estimate by $0.08 to $5.68–$5.78, primarily due to currency. BD also announced plans to repurchase $1.5 billion in common stock in fiscal 2012. Yet shares slipped 1.2%, as investors focused on the company’s declining margin. On May 24, BD reported a new unsecured revolving credit facility for up to $1.5 billion. Shares were marginally higher. Sequenom missed EPS estimates on May 3 but reported strong orders for diagnostic services. Shares rose 2.3% the next day. Transgenomic fell 4.6% on May 9 after the company missed EPS expectations. On May 2, MOCON posted lower first-quarter EPS than a year ago due to higher marketing expenses. Shares fell 9.5%. On May 16, Pressure BioSciences narrowed its first-quarter EPS loss by 59% to $0.14. Shares were unchanged.
On May 7, Credit Suisse upgraded Illumina to “Outperform” from “Neutral.” Morgan Stanley upgraded Affymetrix on May 9 to “Equal Weight” from “Underweight.” Cepheid was downgraded by GARP Research on May 14 to “Neutral” from “Buy,” but upgraded by UBS the next day from “Neutral” to “Buy.” Thermo Fisher Scientific was downgraded by Mizuho on May 15 from “Buy” to “Neutral” and received an initial “Market Perform” rating from Wells Fargo on May 17. Wells Fargo also initiated coverage of Waters and Bruker, each with an “Outperform” rating. Waters was upgraded on May 21 by Mizuho from “Neutral” to “Buy.”
Process/Metrology/Motion Instrumentation Stock Index
For the month, the Process/Metrology/Motion Instrumentation Stock Index dropped 7.2% to 518.37. For both the month and year, five companies declined and two advanced. MTS Systems recorded the largest decline for the month, falling 19%. Nanometrics is down 16% for the year. Veeco Instruments has the highest return for both the month and year, having risen 15% and 67%, respectively.
On May 1, FEI projected GAAP EPS of $0.64–$0.70 for the second quarter. Shares climbed 2.3% the next day. On May 3, MTS lowered its fiscal year 2012 EPS growth rate to low to mid-teens from mid-double-digit growth. Shares fell 11.2% the next day. Veeco was upgraded to “Underperform” from “Sell” by CLSA on May 1, to “Overweight” from “Neutral” by Piper Jaffray on May 9 and “Outperform” from “Neutral” by BNP Paribas on May 30.
Lab Consumables/Equipment Stock Index
The Laboratory Consumables/Equipment Stock Index fell 5.2% in May to 599.10. Six companies traded lower. Techne improved 1%. Enzo Biochem endured the sharpest decline for both the month and year, falling 34% and 19%, respectively. Year to date, the Index is up 5.1%, with four companies in positive territory and three down. QIAGEN has the highest return, having gained 16%. On May 16, Sigma-Aldrich replaced a $450 million revolving credit facility with a new $600 million facility. Shares were slightly lower. The following day, Wells Fargo initiated coverage of the company with a “Market Perform” rating. On May 15, Life Technologies was downgraded by Mizuho from “Buy” to “Neutral.”
Diversified Instrumentation Stock Index
The Diversified Instrumentation Stock Index contracted 3.7% for the month to 145.26. Six companies recorded losses, while AMETEK rose 1%. For the year, all seven firms are in positive territory, led by AMETEK, which has gained 20%. On May 3, Mettler-Toledo projected second-quarter EPS of $2.10–$2.15. Shares fell 7.8% the next day. On May 14, Agilent Technologies raised the midpoint of its fiscal full-year EPS range by 1% to $3.18–$3.24. Shares climbed 4.1% the next day. Mettler-Toledo was downgraded by CLSA on May 4 from “Outperform” to “Underperform.” Wells Fargo initiated coverage of Agilent on May 17 with an “Outperform” rating. On May 25, JPMorgan Chase upgraded Illinois Tool Works from “Neutral” to “Overweight.”
International
In May, five Pacific Region firms declined, and Techcomp was unchanged. JEOL lost the most value for both the month and year, falling 26% and 8%, respectively. HORIBA has climbed 13% for the year. HORIBA reported on May 9 first-quarter EPS of ¥50.51 ($0.64), comparable to a year ago, and raised its full-year EPS forecast by 6.7% to ¥189.14 ($2.35), leading shares up 6.6% the next day. On May 10, Shimadzu posted a 9.6% decline in EPS to ¥30.79 ($0.38) for the fiscal year ending March 31 but forecast fiscal 2012 EPS to grow 43% to ¥44.07 ($0.55). On May 13, Techcomp narrowed its first-quarter EPS loss by 32% to $0.52. On May 14, Precision System Science narrowed its fiscal third-quarter EPS loss by 6.8% to ¥702.45 ($8.87) and projected a fiscal full-year EPS loss of ¥657.46 ($8.30). Shares fell 4.6%.
This month, 10 European firms declined, two improved and one was unchanged. Exiqon slid 24%, while Abcam advanced 6%. For the year, seven companies have gained and six are down. Sartorius is up 55%. Alpha MOS has stumbled 34%. On May 8, Exiqon widened its EPS loss by 53% to DKK 0.23 ($0.04). Shares slumped 13.8%. Analytik Jena reported on May 10 fiscal second-quarter EPS of €0.09 ($0.12), compared with a loss of €0.09 ($0.13) a year ago. Shares rose 3.5% the next day. Datacolor reported on May 10 fiscal half-year EPS of $11.75, which was 5.5% lower than a year ago. Renishaw announced on May 14 that, despite lower adjusted profit before tax (PBT) for the fiscal third quarter, fiscal 2012 PBT is expected to be higher than last year’s £80.4 million ($127.6 million). Shares rose 9.4% the following day.
The IBO composite stock indices are weighted by market capitalization. Index averages for the various financial ratios presented are also weighted statistically to reflect the relative sizes of the constituent companies Lab Instrumentation Index: 12/31/91=100; Process/Metrology/Motion Instrumentation Index: 12/31/93=100; Lab Consumables/Equipment Index: 1/1/01=100; Diversified Instrumentation Index: 1/1/07 = 100. Exchanges: n = NYSE; o = NASDAQ; t = Tokyo; hk = Hong Kong; l = London; g = Germany; s = Switzerland; st = Sweden; no = Nordic Market.; os = Osaka Securities. N/A = not available. NM = not meaningful.
Line Graph: IBO Instrument Industry Stock Index
Lab Instrument Stock Index S&P 500
May-10 557.61 261.19
Jun-10 531.11 247.12
Jul-10 513.20 264.12
Aug-10 499.94 251.58
Sep-10 556.95 273.61
Oct-10 579.40 283.69
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
2012 2011
Cos. Date Rept. FQ Adj.EPS Consensus Vs.Est. Grw. Adj.EPS
Laboratory Instrumentation
ACCL 3-May 1Q $0.08 $0.06 $0.02 0% $0.08
AFFX 3-May 1Q ($0.04) ($0.09) $0.05 NM $0.02
BDX 1-May 2Q $1.38 $1.38 $0.00 0% $1.38
BIO 1-May 1Q $1.09 $1.11 -$0.02 -6% $1.16
BRKR 1-May 1Q $0.14 $0.12 $0.02 8% $0.13
FLDM 10-May 1Q ($0.33) ($0.22) -$0.11 27% ($0.45)
HBIO 3-May 1Q $0.04 NA NA -20% $0.05
MOCO 2-May 1Q $0.14 NA NA -42% $0.24
SQNM 3-May 1Q ($0.22) ($0.19) -$0.03 -69% ($0.13)
TBIO 8-May 1Q ($0.05) ($0.02) -$0.03 17% ($0.06)
Process/Metrology/Motion Instrumentation
FEIC 1-May 1Q $0.63 $0.62 $0.01 17% $0.54
MTSC 3-May 2Q $0.69 $0.90 -$0.21 -8% $0.75
SDIX 10-May 1Q ($0.06) NA NA -20% ($0.05)
ZIGO 3-May 3Q $0.29 NA NA 21% $0.24
Lab Consumables/Equipment
TECH 1-May 3Q $0.90 $0.89 $0.01 7% $0.84
Diversified Instrumentation
A 14-May 2Q $0.78 $0.73 $0.05 5% $0.74
MTD 3-May 1Q $1.66 $1.62 $0.04 14% $1.45
Market Value 52 Week Price Change Change EPS EPS LTD/ FY R&D/
Company: Exchange (US $000s) Low High 5/31/2012 1Month YTD P/E 12Month FY Equity ROE Sales
Laboratory Instrumentation
Accelrys: o $440,794 5.68 8.45 $7.80 -5% 16% NM -0.38 -0.44 17% 1% 24%
Affymetrix: o $331,691 3.68 8.16 $4.74 7% 16% NM -0.46 -0.40 5% NM 24%
Becton, Dickinson and Company:n $15,342,893 69.59 89.75 $73.13 -7% -2% 13 5.44 5.59 114% 26% 6%
Bio-Rad Laboratories: n $2,844,164 84.02 123.98 $99.61 -8% 4% 16 6.19 6.26 49% 10% 9%
Bruker: o $2,475,127 11.48 21.30 $14.83 -1% 19% 26 0.57 0.55 55% 15% 11%
Cepheid: o $2,459,971 29.71 45.00 $37.83 -2% 10% NM -0.05 0.04 2% 1% 21%
Fluidigm: o $283,884 11.64 20.20 $13.92 -11% 6% NM -0.54 -1.81 2% NM 33%
Harvard Bioscience: o $106,229 3.50 6.04 $3.58 -10% -7% 40 0.09 0.13 23% 4% 5%
Illumina: o $5,763,969 25.57 79.40 $43.06 -3% 41% 65 0.66 0.62 73% 8% 19%
Luminex: o $906,356 18.33 25.16 $22.15 -12% 4% 71 0.31 0.34 4% 6% 18%
MOCON: o $88,738 12.20 20.40 $15.59 -13% -3% 18 0.88 0.98 9% 16% 6%
Pacific Biosciences: o $130,274 2.04 12.38 $2.36 -13% -16% NM -1.87 -2.03 4% NM 225%
PerkinElmer: n $3,035,565 17.45 28.75 $26.60 -4% 33% 665 0.04 0.06 73% 0% 6%
Pressure BioSciences: o $2,314 0.22 1.15 $0.30 -44% -50% NM -0.57 -0.77 -1% NM 98%
Sequenom: o $423,261 3.52 8.71 $3.83 -25% -14% NM -0.84 -0.75 13% NM 96%
Thermo Fisher Scientific: n $18,682,648 43.06 65.86 $50.48 -9% 12% 14 3.57 3.46 57% 9% 3%
Transgenomic: o $52,654 0.75 1.85 $0.84 -1% -35% NM -0.03 -0.04 22% NM 7%
Waters: n $7,201,661 70.88 99.37 $79.78 -5% 8% 17 4.66 4.69 70% 35% 5%
Process/Metrology/Motion Instrumentation
FEI Company: o $1,900,279 26.61 52.01 $45.77 -9% 12% 18 2.60 2.51 18% 15% 9%
MKS Instruments: o $1,391,755 20.01 34.99 $26.15 -5% -6% 12 2.15 2.45 3% 13% 7%
MTS Systems: o $612,065 28.00 54.82 $38.66 -19% -5% 12 3.31 3.24 9% 24% 3%
Nanometrics: o $372,425 13.49 21.56 $15.53 0% -16% 18 0.84 1.22 8% 14% 10%
SDIX: o $33,806 1.51 2.78 $1.65 -9% -10% NM -0.04 -0.01 NM NM 15%
Veeco Instruments: o $1,347,769 20.35 56.29 $34.68 15% 67% 15 2.29 3.11 1% 17% 10%
Zygo: o $313,080 9.40 20.44 $16.58 -16% -6% 13 1.30 1.05 2% 15% 10%
Lab Consumables/Equipment
Enzo Biochem: n $70,281 1.80 4.88 $1.82 -34% -19% NM -0.39 -0.34 0% NM 8%
Kewaunee Scientific: o $21,148 7.90 10.50 $8.20 -5% 0% 820 0.01 0.72 29% 6% NM
Life Technologies: o $7,491,153 35.30 53.27 $40.91 -12% 5% 19 2.21 1.99 59% 8% 10%
Pall: n $6,563,093 39.81 64.55 $55.66 -7% -3% 20 2.73 2.67 57% 21% 3%
QIAGEN: o $3,822,160 12.47 19.90 $16.00 -4% 16% 40 0.40 0.40 27% 4% 11%
Sigma-Aldrich: o $8,463,140 56.18 76.16 $69.37 -2% 11% 19 3.71 3.72 25% 21% 3%
Techne: o $2,506,070 62.04 86.43 $67.86 1% -1% 22 3.06 3.02 1% 19% 9%
Diversified Instrumentation
Agilent Technologies: n $14,393,640 28.67 52.62 $40.66 -4% 16% 13 3.11 2.85 60% 23% 10%
AMETEK: n $8,225,416 30.87 52.00 $50.71 1% 20% 20 2.49 2.37 76% 19% 3%
Danaher: n $37,107,775 39.34 56.45 $51.97 -4% 10% 16 3.34 3.11 48% 11% 6%
Illinois Tool Works: n $26,803,528 39.12 59.27 $56.15 -2% 20% 14 3.95 4.19 50% 21% 1%
Mettler-Toledo Int'l: n $5,056,247 126.10 190.02 $156.12 -13% 6% 19 8.42 8.21 97% 35% 5%
Roper Industries: n $10,051,855 64.90 103.50 $101.22 -1% 17% 22 4.52 4.34 47% 13% 4%
Teledyne Technologies: n $2,216,376 43.82 66.29 $59.58 -8% 9% 9 6.94 6.84 53% 15% 5%
Laboratory Instrumentation Stock Index 593.81 -6.8% 5.0% 18 65% 11% 7%
Process/Metrology/Motion Instrumentation 518.37 -7.2% 5.9% 14 7% 15% 8%
Lab Consumables/Equipment Stock Index 599.10 -5.2% 5.1% 21 42% 12% 7%
Diversified Instrumentation Stock Index 145.26 -3.7% 14.6% 16 53% 16% 5%
Dow Jones Industrial Average 12,393.45 -6.2% 1.4%
S&P 500 1,310.33 -6.3% 4.2%
NASDAQ Composite 2,827.34 -7.2% 8.5%
Price
Region Market Value Market Value 5/31/2012 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 $3,049,043 ¥240,078,606 ¥1,743 -14% 4% 17 ¥103.71 ¥103.71 11% 6% 3%
HORIBA: t $1,402,458 ¥110,428,156 ¥2,611 -7% 13% 13 ¥204.00 ¥204.41 16% 8% 9%
JEOL: t $178,409 ¥14,047,711 ¥177 -26% -8% 264 ¥0.67 ¥0.67 100% 0% 6%
Precision System Science: os $33,959 ¥2,673,918 ¥29,300 -13% 1% NM -¥3,272 -¥4,018 41% NM 14%
Shimadzu: t $2,460,241 ¥193,716,905 ¥655 -9% 0% 21 ¥30.79 ¥30.79 19% 5% 3%
Techcomp: hk $74,857 HKD 581,250 HKD 2.50 0% 2% 66 $0.04 $0.04 7% 13% 1%
European Shares
Abcam: I $1,118,343 £721,247 £3.93 6% 8% 28 £0.14 £0.13 1% 32% 4%
Halma: l $2,282,111 £1,471,790 £3.91 -4% 18% 20 £0.19 £0.19 46% 20% 5%
Oxford Instruments: l $988,580 £637,560 £11.55 -6% 22% 20 £0.58 £0.64 39% 34% 7%
Renishaw: l $1,617,335 £1,043,060 £14.33 -1% 43% 17 £0.87 £0.91 37% 30% 10%
Scientific Digital Imaging: l $2,616 £1,687 £0.10 0% -5% 8 £0.01 £0.01 0% NM 5%
Spectris: l $28,951 £1,867,136 £16.06 -15% 25% 15 £1.07 £1.07 75% 21% 7%
Alpha MOS: c $7,168 € 5,780 € 1.48 -19% -34% NM -€ 0.05 -€ 0.14 16% NM 13%
Analytik Jena: g $70,809 € 57,090 € 10.69 -7% 0% 59 € 0.18 -€ 0.03 47% NM 15%
Sartorius: g $1,092,658 € 880,963 € 47.06 1% 55% 18 € 2.55 € 2.44 107% 11% 6%
Tecan: s $744,878 CHF 721,276 CHF 63.2 -8% 0% 14 CHF 4.36 CHF 4.36 5% 18% 12%
Datacolor: s $59,100 CHF 57,227 CHF 375.0 -3% -5% 19 CHF 20.07 CHF 21.48 7% 0% 12%
Biotage: st $792 SEK 5,734 SEK 7.2 -2% 38% 11 SEK 0.66 SEK 0.46 6% 6% 8%
Exiqon: no $54,429 DKK 326,142 DKK 9.3 -24% -3% NM -DKK 0.78 -DKK 0.71 2% NM 21%
