Sigma-Aldrich Corp Earnings: Margin Expands Boosted by Rising Revenue, Net Income Rises

S&P 500 (NYSE:SPY) component Sigma-Aldrich Corporation (NASDAQ:SIAL) reported its results for the fourth 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 Fourth Quarter

Results: Net income for the chemicals company rose to $108 million (89 cents per share) vs. $94 million (76 cents per share) in the same quarter a year earlier. This marks a rise of 14.9% from the year earlier quarter.

Revenue: Rose 4.8% to $610 million from the year earlier quarter.

Actual vs. Wall St. Expectations: Sigma – Aldrich Corporation reported adjusted net income of 91 cents per share. By that measure, the company beat the mean estimate of 89 cents per share. It fell short of the average revenue estimate of $626.9 million.

Quoting Management: Commenting on 2011 performance, President and CEO Rakesh Sachdev said: “Our overall performance for 2011 resulted in another record year for Sigma-Aldrich in sales and earnings per share (“EPS”) as we delivered EPS growth for our 37th consecutive year. The Research business in the U.S. was impacted by challenging market conditions and funding uncertainties in the early weeks of the fourth quarter.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the third quarter, net income rose 25.8% and in the second quarter, the figure rose 16.5%.

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

Revenue has risen the past four quarters. Revenue increased 11.2% to $626 million in the third quarter. The figure rose 15% in the second quarter from the year earlier and climbed 10.5% in the first quarter from the year-ago quarter.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the first quarter of the next fiscal year has moved down from $1.06 a share to $1.04 over the last ninety days. The average estimate for the fiscal year is now $3.74 per share, down from $3.75 sixty days ago.

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

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com