Sustained quantitative easing measures in the US, Japan and China, along with better-than-expected earnings reports and jobless claims toward the end of April, helped elevate the Dow Jones Industrial Average and S&P 500 to new highs this month. However, equity markets came under pressure earlier in the month due to slower manufacturing and durable goods orders. In addition, the US GDP grew 2.5% in the first quarter, which was below analysts’ projections of 3.1% due to lower government spending. Despite the volatility, for the month, the DOW and S&P 500 improved 1.8% each, and the NASDAQ grew 1.9%. Year to date, the Dow, S&P 500 and NASDAQ have gained 13.2%, 12.0% and 10.2%, respectively.

IBO Stock Indexes were mixed, with the Lab Consumables/Equipment and Process/Metrology/Motion Instrumentation Stock Indexes advancing 2.1% and 0.1%, respectively. The Laboratory Instrumentation and Diversified Instrumentation Stock Indexes declined 0.1% and 0.3%, respectively.

Laboratory Instrumentation Stock Index

The Laboratory Instrumentation Index slipped 0.1% in April to close at 782.02. Seven companies improved and 11 declined, led by Affymetrix, which fell 23%. Year to date, the Index has gained 18.0%, with 14 companies rising in value and four with negative returns. Pressure BioSciences led the Index for both the month and year, having risen 58% and 105%, respectively. Transgenomic is down 39% for the year.

First quarter earnings results for companies in the Laboratory Instrumentation Index were mixed. Cepheid, Illumina, Thermo Fisher Scientific and Luminex each beat adjusted first quarter EPS expectations. On April 18, Cepheid maintained its full-year adjusted EPS outlook of $0.01–$0.07. Shares climbed 5.4% the next day. Illumina soared 13.3% on April 23 following strong results. The company also benefited from a share repurchase of $25 million during the quarter. No guidance was provided. Thermo lowered its full-year EPS range by 1% to $5.27–$5.39 excluding the proposed Life Technologies acquisition (see IBO 4/15/13). The reduced EPS outlook was due to the discontinuation of its share buyback program to focus on debt reduction. Shares rose 0.7%. Earlier in the month, on April 10, Thermo climbed 3.8% as the company was rumored to be the frontrunner in bidding for Life. On April 29, Luminex maintained its 2013 revenue guidance of $220–$230 million for growth of 9%–14%. Shares improved 1.2% the next day.

Conversely, on April 9, Affymetrix preannounced first quarter sales (see IBO 4/15/13) 6% below analysts’ estimates, sending shares down 13.7%. The company reported on April 30 an adjusted EPS loss of 0.01 and sales of $77.9 million. On April 23, Waters lowered its adjusted full-year EPS guidance by 3% to $5.15–$5.25 due to currency headwinds. Shares climbed 3.2%. PerkinElmer and Accelrys each missed adjusted first quarter EPS and revenues expectations. On April 25, PerkinElmer cut its adjusted full-year EPS outlook by 10% to $2.00–$2.10. Shares fell 12.0% the next day. Accelrys lowered its full-year EPS outlook by 12% on April 30 to $0.32–$0.34.

In other news, Harvard Bioscience announced on April 9 that it will delay the IPO for its Harvard Apparatus Regenerative Technology subsidiary due to market conditions. Shares slumped 13.6% the next day. On April 16, Sequenom announced that it has accessioned more than 100,000 MaterniT2 PLUS test samples since the introduction of the test in October of 2011. Yet shares fell 1.3%.

Wedbush upgraded Sequenom on April 4 from “Neutral” to “Outperform.” Thermo was downgraded by WallachBeth Capital on April 4 from “Buy” to “Hold,” but upgraded by Mizuho on April 16 from “Neutral” to “Buy.” On April 18, Citigroup initiated coverage of both PerkinElmer and Cepheid with a “Neutral” rating.

Process/Metrology/Motion Instrumentation Stock Index

SDIX was removed from the Index following the proposed sale of its Life Science business to OriGene Technologies on April 8 (see IBO 4/15/13). The Index improved 0.1% to 642.87 for the month. Four companies declined in value, and two traded higher. MTS Systems increased the most, gaining 5%, while Nanometrics fell 3%. For the year, the Index has expanded 13.5%, with four companies in positive territory and two declining. Veeco Instruments has maintained the highest return, having climbed 29%. Zygo is down 5%.

Despite reporting weak first quarter bookings, Veeco soared 16.4% on April 23 due to improving LED market conditions. MKS Instruments, FEI and Nanometrics all exceeded adjusted first quarter EPS consensus. On April 24, MKS Instruments projected adjusted second quarter EPS of $0.04–$0.18. Shares improved 1.1% the next day. FEI forecast on April 30 adjusted second quarter EPS of $0.63–$0.72. On the same day, Nanometrics predicted a second quarter EPS loss of $0.15–$0.26, but it expects to reach profitability in the second half of the year.

On April 23, Veeco was upgraded by Oppenheimer from “Market Perform” to “Outperform,” and by Noble Financial from “Sell” to “Hold.” The next day, the company was upgraded by Canaccord Genuity from “Market Perform” to “Buy.”

Lab Consumables/Equipment Stock Index

The Index grew 2.1% in April to 758.74. Shares for three companies traded higher, and four contracted. For the year, the Index is up 15.7%, with five companies advancing and two declining. Life Technologies leads the Index for both the month and year, having climbed 14% and 50%, respectively. Enzo Biochem has contracted 11% and 17% for the month and year, respectively.

Sigma-Aldrich beat adjusted first quarter EPS estimates on April 25, and reaffirmed adjusted full-year EPS of $4.10–$4.20. Shares rose 1.2%. In contrast, QIAGEN and Techne both missed adjusted EPS and sales expectations. On April 29, QIAGEN cut its full-year adjusted EPS outlook by 3% to $1.13 due to lower sales growth and dilution from acquisitions. Shares fell 4.3% the next day. Earlier in the month, on April 15, Life Technologies jumped 7.5% due to the proposed acquisition by Thermo.

Goldman Sachs downgraded Sigma-Aldrich on April 11 from “Neutral” to “Sell.” Citigroup initiated coverage of QIAGEN on April 18 with a “Sell” rating.

Diversified Instrumentation Stock Index

The Index slid 0.3% to 168.75 for the month. Six companies declined, and three improved. Illinois Tool Works (ITW) had the largest price increase, gaining 6%, while Roper Industries fell 6%. For the year, the Index has advanced 6.6%, with all companies trading higher, led by Teledyne Technologies, which has gained 15%.

Danaher projected on April 18 adjusted second quarter EPS of $0.80–$0.85, which was just below analysts’ expectations. However, the company maintained its adjusted full-year EPS outlook of $3.32–$3.47. Shares fell 2.8%. ITW tightened its full-year adjusted EPS outlook by $0.02 on April 23 to $4.15–$4.35. The company raised its share repurchase plan to roughly $850 million after purchasing $366 million worth of stock during the first quarter. Shares improved 3.3%. The next day, Teledyne increased its full-year EPS outlook by 1% to $4.47–$4.51. Shares rose 1.5%.

Both AMETEK and Roper beat adjusted first quarter EPS expectations, but missed on revenues. AMETEK lowered its full-year adjusted EPS range by $0.01 to $2.08–$2.12. Shares traded slightly lower. Roper raised its adjusted full-year EPS by 2% on April 29 to $5.76–$5.94, yet shares declined 3.8%. On April 30, Xylem reaffirmed its full-year adjusted EPS outlook of $1.79–$1.89.

In other news, on April 12, Fitch Ratings revised Agilent Technologies’ outlook from “Stable” to “Positive.” Shares rose 2.0%. Bank of America initiated coverage of Danaher on April 3 with a “Neutral” rating. On April 29, Teledyne was downgraded by Drexel Hamilton from “Buy” to “Hold.”

International

In April, all seven Pacific Region companies increased in value. For the year, six companies are trading higher, and Techcomp is down 20%. Precision System Science has the highest return for the month and year, having soared 63% and 510%, respectively.

On April 23, Hitachi High-Technologies reported a 17.3% decline in full-year EPS ending March 31 to ¥88.45 ($1.06), which was just below the company’s previous forecast. The company projected fiscal full-year 2013 EPS to climb 62% to ¥143.23 ($1.56). Shares rose 5.4% the next day.

For the month, nine European companies declined, and five improved. Spectris lost the most ground, falling 14%. For the year, 11 companies have positive returns and three have contracted. Porvair has gained the most value for the month and year, having climbed 23% and 66%, respectively. Renishaw is down 20% for the year.

Porvair announced on April 16 that for the four months ending March 31 sales expanded 6% excluding currency. Shares climbed 3.2%. On April 19, Spectris announced that sales for the first quarter declined 8%–9% due to order and shipment delays. Shares fell 14.2%. Sartorius reported on April 23 that adjusted first quarter EPS grew 5% to €0.86 ($1.13). The company maintained its full-year revenue growth guidance of 6%–9%. Shares fell 2.8%. On the same day, Analytik Jena forecast fiscal 2013 sales to grow roughly 7%–10% to more than €100 million ($128 million), but projected lower EPS due to currency. Shares slipped 0.8%. Biotage reported on April 25 a 64% decrease in first-quarter EPS to SEK 0.04 ($0.01) due to lower spending in Europe and the US. Shares fell 4.3%.