One IBO Stock Index Stumbles in August
In August, US equity markets experienced broad gains driven by positive economic data and government spending. The Dow Jones Industrial Average, S&P 500 and NASDAQ ended the month up 3.5%, 3.4% and 1.5%, respectively. Economists projected a 2% GDP growth for the US for the third quarter. The Commerce Department revised the US second-quarter GDP on August 27 to a contraction of 1.0%, compared to previous estimates of a 1.5% decline. Positive US economic reports included a boost in the housing market in July, and higher US manufacturing and consumer confidence levels for August. However, rising jobless claims and foreclosure rates, as well as a record federal deficit and national debt, are escalating fears of inflation and higher interest rates. Year to date, the Dow, S&P 500 and NASDAQ are up 8.2%, 13.0% and 27.4%, respectively. For the month, three of the IBO Stock Indexes traded higher, while the Lab Consumables/Equipment Stock Index slipped 0.7%. The Process/Metrology/Motion Instrumentation Stock Index gained 4.0%, and the Diversified Instrumentation and Laboratory Instrumentation Stock Indexes grew 2.6% and 1.2%, respectively.
Laboratory Instrumentation Stock Index
For August, the Laboratory Instrumentation Index grew 1.2% to 528.47. Fourteen firms traded higher and eight lost ground. Harvard Bioscience declined the most, falling 19%, while Helicos Biosciences led the Index for both the month and year, soaring 391% and 618%, respectively. Year to date, the Index has gained 35.4%, making it the best-performing Index. Eighteen companies are in positive territory, and four companies are trading lower, led by Sequenom, which has lost 68% of its value.
Techne announced on August 4 fiscal fourth-quarter EPS of $0.68 (see page 12), $0.01 below estimates, leading shares down 1.6%. On August 6, Harvard Bioscience reported EPS of $0.05, compared to $0.08, and lowered the top range of its 2009 forecast by $0.01 to $0.27–$0.31 a share, yet shares climbed 2.3% the following day. On the same day, Dionex reported a 17% decline in fiscal fourth-quarter EPS to $0.63, but growth of 10% for the year to $3.04 a share. Both results fell short of expectations, leading shares down 6.1% the following day. Dionex projected EPS of $0.50–$0.54 and $3.01–$3.10 for the fiscal first quarter and fiscal 2010, respectively. On August 6, Luminex missed earnings expectations for the second consecutive quarter. It reported EPS of $0.05, $0.02 below expectations. Shares declined 11.5% the following day. On the same day, Sequenom announced a loss of $0.31 (see page 12), $0.04 wider than consensus. Shares plunged 17.4% the following day. On August 31, rumors regarding the company’s Down syndrome test investigation led shares up 21.0%. Bio-Rad Laboratories reported on August 6 EPS of $1.37, $0.39 better than consensus, sending shares up 8.1% the following day. On August 18, Starlims reported EPS of $0.19 (see page 12), over three times analysts’ expectations, yet shares declined 3.2%.
Earnings for the following companies are on a reported basis. On August 3, MOCON announced EPS of $0.09 (see page 12), compared to $0.18, yet shares climbed 2.1%. X-Rite announced on August 11 EPS of $0.10, compared to a loss of $0.72, but shares were relatively unchanged. On August 12, Transgenomic reported a loss of $0.01 a share, compared to break-even earnings. Helicos BioSciences reported on August 14 a loss of $0.20 a share, compared to a loss of $1.14. Shares declined 2.8%.
An SEC filing on August 3 revealed that Bruker President, CEO and Chairman Frank Laukien purchased $1.5 million in stock over the last two months. Shares climbed 6.7% the following day. He now owns 23.4% of the company. A study released on August 10 used Helicos’s technology to sequence the human genome, leading shares up 20.0%. On August 24, Illumina announced a stock repurchase program for up to $75 million. On August 20, X-Rite announced plans to reduce its debt by $41.6 million using preferred stock, leading shares up 1.0%. Thomas Weisel upgraded PerkinElmer on August 13 to “Overweight” from “Market Weight,” sending shares up 5.6%.
Process/Metrology/Motion Instrumentation Stock Index
The Process/Metrology/Motion Instrumentation Stock Index gained 4.0% to 305.59 this month and is up 26.3% for the year. Five companies improved. Three have declined for both the month and year. RAE Systems declined the most, down 23%, while ICx Technologies is down 40% for the year. Nanometrics led the Index for the month and year, improving 72% and 463%, respectively.
On August 5, FEI Company reported EPS of $0.12 (see page 12), $0.03 below expectations, and forecasted third-quarter EPS of $0.07–$0.12, which was on the low end of analysts’ estimates. Shares declined 2.1% the following day. On the same day, RAE Systems reported a loss of $0.03 a share, $0.02 wider than expected, and projected negative earnings for 2009. Shares declined 25.9% the next day. On August 13, ICx Technologies announced a loss of $0.04 a share, $0.14 better than consensus, leading shares up 2.0% the following day. Zygo reported on August 20 a fiscal fourth-quarter loss of $0.33, $0.16 wider than consensus, yet shares traded flat.
Lab Consumables/Equipment Stock Index
The Laboratory Consumables/Equipment Stock Index slipped 0.7% in August to 454.80. Five companies declined, led by Millipore, which fell 5%, while three companies improved. Kewaunee Scientific recorded the only double-digit gain, up 11%. For the year, the Index has improved 24.8%, with seven companies gaining ground and Techne down 4%. Millipore reported EPS of $1.00 on August 6, $0.05 better than consensus, and increased it full-year EPS guidance by an average of 2% to $3.85–$3.95. Yet shares traded marginally lower. On August 10, QIAGEN reported EPS of $0.24, $0.03 ahead of expectations, and increased the bottom range of its 2009 EPS forecast by $0.02 to $0.90–$0.94. Shares climbed 4.9% the following day. On August 25, Kewaunee Scientific announced EPS growth of 10% to $0.42 (see page 12), and increased its dividend by 25% to $0.10 per share, leading shares up 7.7%.
Diversified Instrumentation Stock Index
For the month, the Diversified Instrumentation Stock Index grew 2.6% to 83.81, with four companies improving, and AMETEK and Danaher down 3% and 1%, respectively. Agilent Technologies gained the most ground for both the month and year, up 11% and 64%, respectively. Year to date, the Index has grown 18.9%, with five companies in positive territory and Teledyne Technologies down 26%. Agilent reported EPS on August 17 of $0.15, $0.04 ahead of expectations, and projected EPS of $0.20–$0.25 for the fourth quarter. Shares jumped 7.9% the following day. On August 26, Roper Industries announced a senior note offering.
International
In August, three Pacific Region firms traded higher, but two declined. For the year, all companies have positive returns. On August 4, Horiba reported EPS of ¥24.11 ($0.25) for the first half of the year, compared to ¥61.40 a share ($0.59). It reduced its 2009 net income forecast by 27% to ¥1.1 billion ($11.5 million) and cut its dividend by 13% to ¥13.00 a share ($0.14). Shares fell 8.3% the following day. On August 13, Techcomp reported a 70% jump in EPS to $0.90 for the first half of 2009 (see page 12). Shares climbed 3.7%. Shimadzu fell 2.7% on August 6 after it cut its six-month earnings forecast by 21% to ¥1.9 billion ($20 million) for a loss of 76%.
This month, nine European companies improved, five declined and Scientific Digital Imaging traded flat. Year to date, 12 European firm have positive returns, and three are down. On August 6, Genetix reported adjusted six-month EPS of £0.02 ($0.03) (see page 12), compared to £0.01 ($0.03). On August 13, Analytik Jena reported a loss of €0.03 ($0.05) for the fiscal third quarter, compared to a gain of €0.03 ($0.05). Shares gained 0.9%. On the same day, Tecan reported six-month EPS of CHF 1.66 ($1.46), compared to CHF 1.71 ($1.63), leading shares up 5.9%. The next day, Biotage announced EPS of SEK 0.06 ($0.01) (see page 12), compared to SEK 0.09 ($0.02). Shares climbed 6.2%. On August 25, Spectris reported first-half adjusted EPS of £0.09 ($0.14) (see page 12), compared to £0.27 ($0.52) a year ago, yet shares climbed 7.1%.
Lab Instrument Stock Index S&P 500
Aug-07 604.22 353.40
Sep-07 648.03 366.05
Oct-07 678.52 371.47
Nov-07 654.48 355.11
Dec-07 656.46 352.05
Jan-08 583.13 330.52
Feb-08 607.77 319.03
Mar-08 600.29 317.13
Apr-08 600.29 332.20
May-08 622.99 335.75
Jun-08 602.24 306.89
Jul-08 639.07 303.86
Aug-08 643.46 307.57
Sep-08 590.45 279.64
Oct-08 456.82 232.26
Nov-08 416.63 214.88
Dec-08 390.29 216.56
Jan-09 397.41 198.01
Feb-09 376.99 176.24
Mar-09 393.81 191.29
Apr-09 428.75 209.26
May-09 446.23 220.37
Jun-09 479.85 220.41
Jul-09 522.15 236.75
Aug-09 528.47 244.70