Sigma-Aldrich Corp Earnings Cheat Sheet: Profitable Quarter Accelerates Growth

Wall St. Cheat Sheet

S&P 500 component Sigma-Aldrich Corporation reported its results for the second 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 Second Quarter

Results: Net income for the chemicals company rose to $113 million (91 cents per share) vs. $97 million (79 cents per share) in the same quarter a year earlier. This marks a rise of 16.5% from the year earlier quarter.

Revenue: Rose 15% to $637 million from the year earlier quarter.

Actual vs. Wall St. Expectations: SIAL‘s adjusted net income of 93 cents per share beat the mean analyst estimate of 92 cents per share. It beat the average revenue estimate of $620.6 million.

Quoting Management: President and CEO Rakesh Sachdev said: “Our reported sales of $637 million set a new quarterly high. Adjusted diluted EPS of $0.93 for the second quarter of 2011 was consistent with our expectation. We have delivered solid performance with organic sales growth in our expected mid single digit range and a 15% increase in adjusted diluted EPS for the first half of the year.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 19% and in the fourth quarter of the last fiscal year, the figure rose 1.5%.

Gross margin shrank 1.1 percentage points to 52%. The contraction appeared to be driven by increased costs, which rose 17.7% from the year earlier quarter while revenue rose 15%.

Revenue has risen the past four quarters. Revenue increased 10.5% to $632 million in the first quarter. The figure rose 1.7% in the fourth quarter of the last fiscal year from the year earlier and climbed 5.5% in the third quarter of the last fiscal year from the year-ago quarter.

The company has now beat estimates for the past three quarters. In the first quarter, it topped the mark by 5 cents, and in the fourth quarter of the last fiscal year, it was ahead by 3 cents.

Competitors to Watch: Techne Corporation , Life Technologies Corp. , Qiagen NV , Thermo Fisher Scientific Inc. , Affymetrix, Inc. , Hawkins, Inc. , Enzo Biochem, Inc. , Aceto Corporation , Strategic Diagnostics Inc. , and PerkinElmer, Inc. .

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(Source: Xignite Financials)

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