Major US equity markets were volatile in August due to uncertainty surrounding the Federal Reserve’s quantitative easing policy, potential military intervention in Syria and mixed economic data. In the US, second quarter GDP was revised up from 1.7% growth to 2.5% growth and unemployment claims declined to a five-year low. However, US orders for both durable and capital goods were lower than expected. For the month, the Dow Jones Industrial Average, S&P 500 and NASDAQ declined 4.4%, 3.1% and 1.0%, respectively. Year to date, the Dow, S&P 500 and NASDAQ are up 13.0%, 14.5% and 18.9%, respectively.

All four IBO Stock Indexes declined in August, led by the Laboratory Instrumentation Index, which declined 3.3%. The Process/Metrology/Motion Instrumentation, Diversified Instrumentation and Lab Consumables/Equipment Stock Indexes fell 2.6%, 1.2% and 0.7%, respectively.

Laboratory Instrumentation Stock Index

This month, the Index contracted 3.3% to 831.25. Ten companies traded higher, and nine declined. Year to date, the Index has climbed 25.5%, with 14 companies advancing and five losing ground. For both the month and year, Pacific Biosciences (PB) had the highest return, having gained 61% and 146%, respectively, while Transgenomic has dropped 22% and 43%, respectively.

On August 1, PerkinElmer, Fluidigm and PB each beat second quarter EPS estimates and forecast positive outlooks, leading shares up 3.8%, 9.9% and 6.7% the next day, respectively. PerkinElmer raised the lower end of its 2013 adjusted EPS outlook by $0.03 to $2.03–$2.10. Fluidigm raised its 2013 sales growth outlook by five percentage points to 27%–31%. PB reported strong quarterly bookings. Becton, Dickinson beat quarterly EPS estimates on August 1 but kept its fiscal 2013 adjusted EPS outlook of $5.72–$5.75. Shares slipped 0.6%. NanoString Technologies beat quarterly EPS consensus on August 6 but forecast a net loss of $30–$35 million for the year. Shares fell 6.0% the next day. On August 30, MOCON reported GAAP second quarter EPS of $0.14, compared with a loss of $0.03, due to a tax benefit and accounting adjustments in the previous year. Shares climbed 2.5%.

Piper Jaffray upgraded PB on August to “Neutral” from “Underweight.” On August 8, Merriman started Pressure BioSciences with a “Speculative Buy” rating. Janney Capital initiated Bruker on August 15 with a “Neutral” rating.

Process/Metrology/Motion Instrumentation Stock Index

The Index declined 2.6% to 676.61 in August. Four companies declined in value, while FEI and Veeco Instruments each grew 1%. Year to date, the Index is up 19.5%, with half of the companies trading higher and the other half down. FEI maintains the largest gain, having climbed 41%. Zygo is down 12% for both the month and year.

FEI beat quarterly EPS estimates on August 1 but missed on sales. The company projected third quarter GAAP EPS of $0.60–$0.70. Shares fell 4.4% the next day. On August 5, MTS Systems narrowed the top end of its fiscal 2013 adjusted EPS range by 3% to $3.30–$3.60. Shares fell 2.5% the next day.

Lab Consumables/Equipment Stock Index

The Index fell 0.7% to 787.66 this month. Four firms rallied, and four declined. Cellular Dynamics International (CDI) enjoyed the largest gain, rising 31%, while QIAGEN fell 4%. Year to date, the Index has advanced 20.1%, with seven firms trading higher and Enzo Biochem down 10%. Life Technologies has sustained the largest price increase, having risen 52%.

Kewaunee Scientific soared 12.7% on August 28 after the firm raised its quarterly dividend by 10% to $0.11 and reported fiscal first quarter GAAP EPS growth of 144% to $0.61. On August 29, Pall projected fiscal 2014 EPS to grow 9%–15% to $3.30–$3.50. Shares rose 0.8%. The same day, CDI narrowed its second quarter EPS loss by 18% to $2.92 due to sales growth of 123.2% (see page 12). Shares traded slightly higher. On August 19, Leerink started the firm with an “Outperform” rating.

In other news, Enzo Biochem jumped 14.0% on August 5 after its $48.6 million lawsuit against Life was upheld. It may also receive prejudgment interest of over $25 million.

Diversified Instrumentation Stock Index

In August, the Index contracted 1.2% to 181.80. Seven companies recorded losses, led by AMETEK, which fell 7%, while Agilent Technologies improved 4%. For the year, the Index has grown 14.9%, with seven companies advancing and Xylem down 9%. Teledyne Technologies has sustained the largest price increase, having risen 19%.

On August 7, AMETEK projected full-year adjusted EPS to be at the low range of its previous outlook of $2.08–$2.12. Shares fell 3.4%. The following day, Robert W. Baird downgraded the company from “Outperform” to “Neutral.” On August 14, Agilent narrowed the lower range of its fiscal 2013 adjusted EPS guidance by $0.13 to $2.83–$2.85 and projected fiscal fourth quarter adjusted EPS of $0.75–$0.77. Shares climbed 1.0% the next day.

On August 2, Illinois Tool Works announced a quarterly dividend increase of 10.5% to $0.42 a share and a $6 billion share repurchase plan. Shares rose 0.8%. On August 21, Xylem announced a $250 million share repurchase plan, yet shares slipped 0.5%.

International

In August, four Pacific Region firms fell and three improved. HORIBA declined the most, falling 11%. Shimadzu climbed 11%. For the year, all seven firms have advanced, led by Precision System Science (PSS), which is up 383%.

On August 6, HORIBA reported that second quarter EPS grew 28% to ¥27.32 ($0.28) and raised its half-year dividend by 20% to ¥18.00 ($0.19). The company maintained its 2013 EPS forecast of ¥148.94 ($1.57), yet shares slumped 13.0% the next day. On August 7, Shimadzu reported fiscal first quarter EPS of ¥8.92 ($0.09), compared with a loss of ¥0.80 ($0.01). The firm raised its fiscal 2014 EPS target by 7% to ¥49.20 ($0.52), leading shares up 7.7% the next day. On August 9, PSS recorded EPS of ¥11,115 ($126.7), compared with a loss of ¥2,072 ($26.4). It projected fiscal 2014 EPS of ¥73.53 ($80.0) following an expected 200-for-1 stock split. Shares rose 7.2% the next day. Techcomp reported on August 14 flat second quarter EPS of $0.01. Shares were slightly higher.

This month, prices for eight European companies contracted and six expanded. Scientific Digital Imaging recorded the lowest return, falling 9%, while Renishaw rose 8%. Year to date, 10 European companies have recorded gains and four are in negative territory. Porvair maintains the largest increase, up 62%, while Alpha MOS is down 19%.

On August 8, Analytik Jena reported a fiscal third quarter EPS loss of €0.16 ($0.21), compared with a profit of €0.05 ($0.06). Shares fell 2.2%. On August 14, Tecan reported a six-month EPS decline of 7.5% to CHF 1.49 ($1.59) due to currency, yet shares climbed 5.2%. On August 15, Biotage reported that second quarter EPS grew 5% to SEK 0.19 ($0.03). Shares rose 3.8% the next day. On August 16, Exiqon narrowed its second quarter EPS loss by 73% to DKK 0.03 ($0.01) and projected 2013 sales to grow 11% to DKK 130 million ($23.6 million). Shares declined 1.2% the next day.