In February, the S&P 500 and NASDAQ declined for the third consecutive month, sliding 0.4% and 1.2%, respectively. Meanwhile, the Dow Jones Industrial Average weathered the negative trend as it posted a modest gain of 0.3%. Equity markets were extremely volatile as a result of fluctuating oil prices and anxieties over global economic growth. Nevertheless, the US continued to show resilience, led by consumer spending and residential investments. Fourth quarter 2015 US GDP growth was revised higher by 30 basis points to 1.0%. Year to date, the Dow, S&P 500 and NASDAQ are down 5.2%, 5.5% and 9.0%, respectively.

Laboratory Instrumentation

The Index slipped 0.7% in February to 220.39 and is down 10.0% for the year. A majority of companies in the Index declined for the month in spite of a number of companies reporting stronger-than-expected quarterly earnings.

Bruker recorded the largest monthly gain, climbing 16.3%. The company easily topped analysts’ fourth quarter 2015 expectations on February 10, as EPS jumped 27% to $0.38 due to completed restructuring activity, pricing and operational improvements. The company projected 2016 EPS of $0.97–$1.02, which was ahead of analysts’ projections.

Likewise, FEI, Mettler-Toledo and MTS Systems all advanced after posting stronger-than-expected calendar year fourth quarter 2015 results. Reporting on February 2, FEI benefited from record life sciences revenue, margin improvements and product mix. The company projected 2016 GAAP EPS of $3.55–$3.70. Shares climbed 12.1% for the month. Mettler-Toledo reported on February 4 that quarterly adjusted EPS grew 10% to $4.65 in spite of currency headwinds and challenges in certain emerging markets. The firm forecast adjusted 2016 EPS to grow 9%–11% to $14.10–$14.30. Shares improved 0.7% for the month. Quarterly earnings for MTS Systems were boosted by cost control measures. However, the company maintained its fiscal 2016 EPS range of $3.03–$3.28 on February 4 due to slowing demand from industrial markets. Shares expanded 2.9% for the month.

Becton, Dickinson also beat analysts’ fiscal first quarter adjusted EPS estimates on February 3, but missed on sales. Despite increased currency headwinds, the company maintained its fiscal 2016 adjusted EPS range of $8.37–$8.44 for growth of 17% including acquisitions. Deutsche Bank upgraded the company on February 11 from “Hold” to “Buy.” Shares advanced 1.4% for the month.

Several other companies similarly beat analysts’ quarterly earnings but traded lower for the month. On February 4, Fluidigm projected 2016 sales of $124–$128 million for growth of 10%, or 12% excluding currency. Mizuho upgraded the company the following day from “Neutral” to “Buy.” Yet shares declined 1.2% for the month. Agilent reported on February 16 that fiscal first quarter adjusted EPS grew 12% to $0.46, which was ahead of consensus due to higher revenue growth and product mix. However, the company lowered its fiscal 2016 adjusted EPS outlook by $0.04 to $1.81–$1.87 because of currency. Shares slipped 0.8% for the month.

VWR topped analysts’ fourth quarter 2015 estimates on February 25, led by US biopharmaceutical demand and lower interest expenses. It projected 2016 adjusted EPS to grow 7%–12% to $1.62–$1.70. Shares slipped 0.2% for the month.

NanoString posted strong fourth quarter 2015 results, but after the markets’ close on February 29. The company’s EPS loss narrowed due to strong consumables demand and collaborative revenue. The company projected 2016 sales to grow 40% to $86–$90 million, and a GAAP EPS loss of $2.30–$2.45. Shares contracted 13.7% for the month.

Boosted by tax benefits, both Luminex and Bio-Rad Laboratories posted fourth quarter 2015 adjusted EPS well above analysts’ consensus on February 1 and February 25, respectively. Luminex projected 2016 sales of $245–$255 million for growth of 5%. Shares declined 2.7%. For 2016, Bio-Rad forecasts currency-neutral sales to grow 2.5%–3.0%, including flat earnings. Shares advanced 5.5% for the month.

Bio-Techne and Pacific Biosciences both posted quarterly EPS in line with analysts’ expectations on February 2 and February 3, respectively. Bio-Techne, which improved 3.8% for the month, recorded stronger-than-expected sales in Europe and Asia within the Biotechnology segment. Pacific Biosciences also recorded strong revenue growth, which jumped 115% due to contractual revenue from Roche. However, the company announced an offering of up to $30 million in shares, creating further dilution. On February 4, Piper Jaffray downgraded the company from “Overweight” to “Neutral.” Shares slumped 22.5% for the month, leading all companies in the Index.

Conversely, Illumina, PerkinElmer and QIAGEN all missed analysts’ fourth quarter 2015 adjusted EPS expectations. Illumina’s quarterly EPS slipped just below consensus due to currency headwinds and increased investments. On February 2, the company projected 2016 adjusted EPS of $3.55–$3.65 for growth of 8%, including $0.25 dilution from investments (see IBO 1/15/16). Canaccord Genuity downgraded the company on February 4 from “Buy” to “Hold.” Shares contracted 4.9% for the month.

Timing of diagnostic service revenue and lower instrument sales negatively impacted QIAGEN’s earnings on February 2. The company projected full-year 2016 adjusted EPS to grow 2%, 5% excluding currency, to $1.07–$1.08. Shares declined 7.0% for the month. Meanwhile, weak industrial markets and currency headwinds affected PerkinElmer’s earnings. On February 5, the company projected 2016 adjusted EPS to grow 6%, 8% excluding currency, to $2.65–$2.75. Shares slipped 2.2% for the month.

Diversified Instrumentation

The Index grew 0.6% for the month to 182.38 but is down 2.8% year to date. Half the companies traded higher in February, led by Teledyne Technologies, which improved 4.9%. Despite a decline in fourth quarter 2015 adjusted EPS on February 4, company earnings were ahead of analysts’ consensus and grew sequentially. Teledyne projected 2016 adjusted EPS of $5.05–$5.15.

Despite weak industrial markets, both AMETEK and Xylem reported fourth quarter 2015 adjusted EPS in line with analysts’ consensus. On February 4, Xylem projected 2016 adjusted EPS to grow 8% to $1.95–$2.05, led by higher organic growth and operational improvements. Shares improved 4.1% for the month. On February 5, AMETEK projected 2016 EPS to grow 2% to $2.55–$2.65. Shares fell 1.4% for the month.

Roper Technologies recorded the largest monthly decline in the Index, falling 4.4%. It fell short of analysts’ fourth quarter 2015 adjusted EPS estimates on February 1 due to challenges in the industrial and energy markets. In addition, the company projected 2016 adjusted EPS of $6.85–$7.15, which was below analysts’ consensus.

International

Most major international equity markets traded lower in February as a result of fluctuating oil prices, weak manufacturing data in the Eurozone, and tepid fourth quarter 2015 GDP growth in Germany and the UK. However, hopes for oil production cuts and increased stimulus in China helped offset negative sentiment. Japan’s Nikkei 225 and India’s Sensex 30 recorded the largest monthly declines, falling 8.5% and 7.5%, respectively. Conversely, Taiwan’s TAIEX advanced 4.1% and the UK’s FTSE 100 improved 0.2%.

Prices for most Pacific Rim companies in the IBO Stock Table declined, led by JEOL, which slumped 20.1%. On February 12, it reported that fiscal third quarter EPS ending December 31, 2015, jumped 54% to ¥9.09 ($0.08), led by Science and Measurement Equipment revenue growth.

HORIBA, which fell 12.8% for the month, reported on February 9 that fourth quarter 2015 EPS fell 15% to ¥133.73 ($1.10) due to gains from investment securities in the previous year. Full-year 2015 EPS climbed 22% to ¥304.36 ($2.51), which was ahead of company projections. Annual dividend payout expanded 4% to ¥70 ($0.58) per share. For 2016, EPS are expected to decline 16% to ¥256.57 ($2.30) as a result of currency and increased investments. Precision System Science also declined double digits this month, sliding 11.5%. On February 5, the company lowered its fiscal 2016 EPS guidance from a modest gain to a loss of ¥17.82 ($0.15) due to lower reagent and consumables sales. On February 12, the company reported that fiscal second quarter EPS loss ending December 31, 2015, widened 13% to ¥3.48 ($0.03) due to a 4.8% decline in sales.

Similar to JEOL, Shimadzu declined for the month despite strong quarterly results. On February 9, the company reported that fiscal third quarter EPS ending December 31, 2015, climbed 23% to approximately ¥16.80 ($0.14), led by strong pharmaceutical sales growth in India and Southeast Asia. The company maintained its previous financial outlook. Shares fell 4.2% for the month. Conversely, GL Sciences improved 3.2% for the month. For the same fiscal third quarter, the company reported on February 3 that EPS expanded 26% to ¥13.92 ($0.11) despite a revenue decline of 8%.

Prices for the UK-based companies in the IBO Stock Table advanced with the exception of Oxford Instruments, which fell 4.5%, and Scientific Digital Imaging, which was unchanged. Spectris recorded the largest monthly gain, advancing 14.2%. On February 16, the firm reported that adjusted 2015 EPS fell 8% to 114.3 pence ($1.76). It projected an improved outlook due to restructuring measures and new products. Spectris was upgraded by JPMorgan Chase from “Neutral” to “Overweight” on February 17, and by Numis Securities from “Reduce” to “Add” on February 18.

Prices for other European firms in the Table were mixed. Tecan recorded the highest return, rising 5.0%. Biotage, which improved 3.4% for the month, reported on February 11 that fourth quarter 2015 EPS climbed 23% to SEK 0.32 ($0.04) due to currency benefits. On February 8, Exiqon reported that fourth quarter 2015 EPS jumped to a profit of DKK 0.14 ($0.02), compared to a loss of DKK 0.10 (0.02), driven by revenue growth of 35%. Shares slipped 0.8% for the month.