Sigma-Aldrich Corporation SIAL is a leading life sciences company developing, manufacturing and distributing various biochemicals and organic chemicals. These chemical products and kits are used in scientific and genomic research, biotechnology, pharmaceutical development, diagnosis of diseases, and chemical manufacturing.
Sigma-Aldrich is looking forward to joining Germany-based Merck KGaA. The company is progressing toward the completion of its proposed acquisition by Merck KGaA in a deal worth $17 billion.
Sigma-Aldrich’s significant investments in sales, marketing and R&D initiatives are creating demand for its products. The company has also taken up cost control and plant process improvement measures. It is also effectively managing its working capital, contributing to healthy free cash flow generation. However, the company’s research business has been exposed to a still uncertain academic spending environment.
Let’s have a quick look at the company’s third-quarter release.
Estimate Trend & Surprise History
Investors should note that the earnings estimate for Sigma-Aldrich for the third quarter has remained flat at $1.06 both over the last week and the last month. The company has missed the Zacks Consensus Estimate in 2 of the trailing 4 quarters with an average miss of 1.77%.
Earnings
Sigma-Aldrich delivered adjusted earnings of $1.00 per share. Earnings missed the Zacks Consensus Estimate of $1.06 per share.
Revenues
Sigma-Aldrich reported revenues of $703 million, up 1.9% year over year. This beat the Zacks Consensus Estimate of $690 million.
Key Developments to Note
Organic sales growth was 9% while changes in foreign currency rates decreased sales by 8%. Acquisitions increased sales by 1%.
Zacks Rank
Currently, Sigma-Aldrich has a Zacks Rank #3 (Hold), but that could change following its earnings report which was just released.
Market Reaction
Sigma-Aldrich’s shares were inactive following the release. It would be interesting to see how the market reacts to the results during the trading session today.
Check back later for our full write up on Sigma-Aldrich’s earnings report!
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