Sigma-Aldrich Earnings: Expanding Margins Streak Snapped, but Profit Still RISES

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S&P 500 (NYSE:SPY) component Sigma – Aldrich Corporation (NASDAQ:SIAL) reported its results for the second 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 rose to $115 million (94 cents per share) vs. $113 million (91 cents per share) in the same quarter a year earlier. This marks a rise of 1.8% from the year-earlier quarter.

Revenue: Rose 4.2% to $664 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Sigma – Aldrich Corporation reported adjusted net income of 97 cents per share. By that measure, the company fell in line with the mean estimate of 97 cents per share. Analysts were expecting revenue of $674.7 million.

Quoting Management: Commenting on second quarter 2012 performance, President and CEO Rakesh Sachdev said, “We delivered another solid quarter of sales and EPS growth. We generated $664 million of sales in second quarter 2012, which represented 3% organic sales growth. We achieved growth in all geographic regions. Changes in foreign currency exchange rates since our last earnings call reduced otherwise reportable second quarter 2012 sales and adjusted EPS by $11 million and $0.01, respectively.

Key Stats:

Revenue has risen the past four quarters. Revenue increased 5.2% to $665 million in the first quarter. The figure rose 4.8% in the fourth quarter of the last fiscal year from the year earlier and climbed 11.2% in the third quarter of the last fiscal year from the year-ago quarter.

The company has now fallen in line with estimates for the past two quarters. It reported net income of 99 cents in the first quarter.

Net income has increased 11.5% 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 third quarter has moved down from $1.01 a share to $1 over the last seven days. Over the past sixty days, the average estimate for the fiscal year has reached $3.98 per share, a decline from $4.01.

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

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