Sigma-Aldrich Corp. Earnings: Increased Costs Strain Margins as Profit Drops

S&P 500 (NYSE:SPY) component Sigma – Aldrich Corporation (NASDAQ:SIAL) reported its results 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 Corporation Earnings Cheat Sheet

Results: Net income for Sigma – Aldrich Corporation fell to $112 million (92 cents per share) vs. $117 million (95 cents per share) a year earlier. This is a decline of 4.3% from the year-earlier quarter.

Revenue: Rose 2.1% to $639 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Sigma – Aldrich Corporation reported adjusted net income of 94 cents per share. By that measure, the company fell short of mean estimate of 97 cents per share. It fell short of the average revenue estimate of $674.7 million.

Quoting Management: President and CEO Rakesh Sachdev said, “We were able to deliver $0.94 adjusted EPS, which includes an $0.11 EPS headwind for unfavorable year-over-year changes in foreign currency exchange rates, while generating 2% overall organic sales growth.”

Key Stats:

Revenue has increased for four consecutive quarters. Revenue increased 4.2% to $664 million in the second quarter. The figure rose 5.2% in the first quarter from the year earlier and climbed 4.8% in the fourth quarter of the last fiscal year from the year-ago quarter.

The company fell short of estimates last quarter after being in line with expectations the quarter before with net income of 99 cents.

Net income has increased 7.3% year-over-year on average across the last five quarters. The biggest gain came in the third quarter of the last fiscal year, when income climbed 25.8% from the year-earlier quarter.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the fourth quarter has moved down from $1.01 a share to $1 over the last seven days. The average estimate for the fiscal year is $3.98 per share, falling from $4.01 thirty days ago.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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