Sigma-Aldrich Earnings Cheat Sheet: Stock Surges on Successful Quarter

S&P 500 (NYSE:SPY) component Sigma-Aldrich Corporation (NASDAQ:SIAL) reported net income above Wall Street’s expectations for the first quarter. Sigma-Aldrich Corporation is a life science and high technology company that develops, manufactures, purchases and distributes a range of high quality chemicals, biochemicals and equipment.

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Sigma-Aldrich Earnings Cheat Sheet for the First Quarter

Results: Net income for Sigma-Aldrich Corporation rose to $119 million (97 cents/share) vs. $100 million (81 cents/share) in the same quarter a year earlier. A rise of 19% from the year earlier quarter.

Revenue: Rose 10.5% to $632 million YoY.

Actual vs. Wall St. Expectations: SIAL beat the mean analyst estimate of 90 cents/share. Estimates ranged from 85 cents per share to 93 cents per share.

Quoting Management: President and CEO Rakesh Sachdev said: “Our reported sales of $632 million and diluted EPS of $0.97 for the first quarter of 2011 were the best reported quarterly results in our history. We are very pleased with this strong performance as we begin 2011. Our SAFC sales grew by 16% on an organic basis driven by continued strong demand for materials and precursors for semi-conductor and L.E.D. applications and for industrial cell culture media used for producing biological drugs. Our research initiatives in analytical chemistry, biology, traditional chemistry and materials science, coupled with a 2% acquisition benefit to expand our analytical chemistry offering, helped achieve currency adjusted growth of 6% in our Research business.”

Key Stats: Last quarter marked the fifth consecutive quarter of gross margins expanding as the company’s gross margin expanded 0.2 percentage point to 53.2% from the year earlier quarter. Over that span, margins have grown on average 1.2 percentage points per quarter on a year-over-year basis.

The company has now seen net income rise in three-straight quarters. In the fourth quarter of the last fiscal year, net income rose 1.5% and in the third quarter of the last fiscal year, the figure rose 8%.

Over the last five quarters, revenue has increased 6.8% on average year over year. The biggest increase came in the most recent quarter, when revenue rose 10.5% from the year earlier quarter.

Competitors to Watch: Life Technologies Corp. (NASDAQ:LIFE), Techne Corporation (NASDAQ:TECH), Qiagen NV (NASDAQ:QGEN), Thermo Fisher Scientific Inc. (NYSE:TMO), Affymetrix, Inc. (NASDAQ:AFFX), Hawkins, Inc. (NASDAQ:HWKN), Enzo Biochem, Inc. (NYSE:ENZ), Aceto Corporation (NASDAQ:ACET), Strategic Diagnostics Inc. (NASDAQ:SDIX), and PerkinElmer, Inc. (NYSE:PKI).

Today’s Performance: Shares of SIAL are trading at $70.46 as of April 26, 2011 at 3:45 PM ET, up 4.74% from the previous close.


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