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Bruker Reported 3Q15 Earnings and Drove IHI Mid-Cap Stocks

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Nov. 9 2015, Updated 4:08 p.m. ET

IHI’s mid-cap stocks outperformed

The mid-cap stocks of the iShares US Medical Devices (IHI) gave an average return of 1.2% and outperformed the fund itself. IHI gave a return of 0.3%. The mid-cap stocks also outperformed the broader market representative, the SPDR S&P 500 ETF (SPY), which gave a return of -0.1% as of November 5, 2015. The mid-cap stocks of IHI have an ~18.2% weight in IHI’s portfolio. As of November 5, 2015, IHI had 17 mid-cap stocks in its portfolio with a market cap between $2 billion and $10 billion. Among the 17 mid-cap stocks, 13 stocks gave positive returns and four stocks fell marginally.

The above graph reflects the performance of IHI’s mid-cap stocks in comparison with IHI and SPY. Since October 26, 2015, IHI mid-cap stocks, like large-cap stocks, have given a return of 6% while IHI has given a return of 5.2%, and SPY has given a return of 1.3%.

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Bruker announced 3Q15 earnings

Bruker (BRKR) went up by 4.9% on good 3Q15 earnings. The company reported 3Q15 revenues of $396.1 million, a decline of 5.6% compared to 3Q14. The decline was mainly from a 2.8% negative effect from divestitures and a 10.9% negative effect from foreign exchange rates. However, 3Q15 GAAP (generally accepted accounting principles) diluted EPS (earnings per share) was reported at $0.07 as compared to GAAP EPS of $0.03 in 3Q14.

Bruker closed at $20.29 and was trading above its 20-day, 50-day, and 100-day moving averages. The stock’s RSI (relative strength index) stood at 72, indicating that the stock has temporarily moved into overbought territory. At its current price, the stock is trading at a price-to-book value (or PBV) of 4.44x. BRKR has a weight of 0.65% in IHI’s portfolio.

The other mid-cap stocks that performed well in IHI’s portfolio are Steris (STE), Idexx Laboratories (IDXX), and Varian Medical Systems (VAR), which gave returns of 1.8%, 0.4%, and 1.2%, respectively.

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