Sigma-Aldrich Corp Earnings Cheat Sheet: Revenue Increase Helps Margin, Net Income Climbs

S&P 500 (NYSE:SPY) component Sigma-Aldrich Corporation (NASDAQ:SIAL) reported net income above Wall Street’s expectations for the third quarter. Sigma-Aldrich 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 Third Quarter

Results: Net income for the chemicals company rose to $117 million (95 cents per share) vs. $93 million (76 cents per share) in the same quarter a year earlier. This marks a rise of 25.8% from the year earlier quarter.

Revenue: Rose 11.2% to $626 million from the year earlier quarter.

Actual vs. Wall St. Expectations: SIAL reported adjusted net income of 96 cents per share. By that measure, the company beat the mean estimate of 91 cents per share. Analysts were expecting revenue of $632.3 million.

Quoting Management: Commenting on third quarter 2011 performance, President and CEO Rakesh Sachdev said: “Our reported sales of $626 million met our expectations. Consistent with earlier quarters in 2011, we delivered solid performance with organic sales growth in our expected mid single digit range and a mid-teens percentage increase in diluted adjusted EPS. Our organic sales growth for our Research business in Q3 was right in-line with earlier quarters at 4%. Our overall dollar sales in Q3 for SAFC remained strong at $180 million, consistent with prior quarters of 2011. Diluted adjusted EPS of $0.96 for the third quarter of 2011 exceeded our expectations due to a lower than expected effective tax rate and stronger adjusted operating income margins.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 16.5% and in the first quarter, the figure rose 19%.

The company has now topped analyst estimates for the last four quarters. It beat the mark by one cent in the second quarter, by 5 cents in the first quarter, and by 3 cents in the fourth quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue increased 15% to $637 million in the second quarter. The figure rose 10.5% in the first quarter from the year earlier and climbed 1.7% in the fourth quarter of the last fiscal year from the year-ago quarter.

Margins rose in the second quarter after falling the quarter before. Gross margin rose 0.3 percentage point to 53.2% from the quarter earlier quarter. In the first quarter, the figure rose 1.1 percentage points to 52% from the year earlier quarter.

Looking Forward: Expectations for the fourth quarter have not changed from 92 cents. For the fiscal year, the average estimate has moved down from $3.71 a share to $3.70 over the last thirty days.

Competitors to Watch: Techne Corporation (NASDAQ:TECH), Life Technologies Corp. (NASDAQ:LIFE), 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).

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(Source: Xignite Financials)