Two IBO Stock Indexes withstand market downturn

Instrument Business Outlook, Feb 29, 2008

On February 1, the S&P's Rating Services removed Pall's credit rating from CrediWatch and affirmed its "BBB" corporate credit rating, leading shares up 3.0%. After the market close on February 5, Invitrogen announced adjusted fourth-quarter EPS of $1.05, $0.06 ahead of analysts' expectations, and reported the settlement of several patent disputes (see IBO 2/15/08). The following day, Deutsche Securities upgraded Invitrogen to "Buy" from "Hold," helping shares close up 6.4%. After the market close on February 11, QIAGEN NV reported adjusted EPS of $0.16, $0.02 better than market expectations, and forecasted adjusted 2008 EPS of $0.76-$0.80, leading shares up 2.2% the following day. On February 1, following the company's earnings report, Millipore provided adjusted 2008 EPS guidance of $3.58-$3.63, which was below analysts' expectations of $3.88 a share, sending shares down 7.9%. However, shares rebounded 4.0% on February 25, following FDA approval for Genentech's Avastin, which is expected to benefit Millipore's bioprocess unit.

Diversified Instrumentation Stock Index

The Diversified Instrumentation Stock Index declined 4.0% for the month to 101.57, with five companies trading lower and Roper Industries up 1%. Teledyne Technologies led all decliners, falling 14%. For the year, the Index is down 15%, with all companies in negative territory.

After the market close on February 13, Agilent Technologies reported adjusted first-quarter EPS of $0.42, which was $0.06 better than analysts' expectations, and forecasted second-quarter adjusted EPS of $0.46-$0.50, $0.03 below the average analyst's estimate, leading shares down 2.8%. On February 7, Deutsche Bank upgraded Danaher from "Buy" to "Hold." On February 20, Stifel Nicolaus initiated coverage of Teledyne Technologies with a "Buy" recommendation. On February 25, Sterne Agee downgraded Roper Industries to "Sell" from "Hold."

International

In February, four Pacific Region companies traded higher, while JEOL declined 11%. Horiba was the only company to report a double-digit gain, climbing 13%. For the year, all five companies are trading lower.

This month, 11 European companies improved and four companies declined. Analytik Jena AG and Biotage AB led all companies, both climbing 18%, while Cybio AG declined 30%. For the year, nine European companies show positive returns, while six firms are in negative territory. Whatman leads the way, up 39%, while Cybio AG has fallen 41%.

On February 14, Analytik Jena reported fiscal first-quarter EPS of 0.27 [euro] ($0.39) compared to 0.16 [euro] ($0.21) last year, leading shares up 6.2%. On February 7, Biotage AB announced fourth-quarter EPS of 0.48 SEK ($0.07) compared to 0.12 SEK ($0.02) in the previous year, yet shares slipped 2.6%. On February 22, Spectris reported full-year EPS of 0.71 [pounds sterling] ($1.42) compare to 0.49 [pounds sterling] ($0.91) in the previous year (see page 12) and increased its dividend by 20% to 0.21 [pounds sterling] ($0.42), sending shares up 6.9%. On February 26, Techcomp reported full-year EPS of $0.04 compared to $0.03 last year (see page 12) and announced its first dividend of 0.12 SGD ($.09).