Markets

Sigma-Aldrich (SIAL) Misses Q1 Earnings and Revenue Estimates - Tale of the Tape

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 set to be acquired by Germany's Merck KGaA in a deal worth $17 billion. Sigma-Aldrich has received antitrust clearance for the transaction.

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 first-quarter release.

Estimate Trend & Surprise History

Investors should note that the earnings estimate for Sigma-Aldrich for the first quarter has declined by 2 cents over the last month. The company has beaten the Zacks Consensus Estimate in 3 of the trailing 4 quarters with an average beat of around 2.10%.

Earnings

Sigma-Aldrich delivered adjusted earnings of $1.06 per share. Earnings missed the Zacks Consensus Estimate of $1.08 per share.

Revenues

Sigma-Aldrich reported revenues of $676 million, down 1.9% year over year. This also missed the Zacks Consensus Estimate of $691 million.

Key Developments to Note

Organic sales growth was 5% while changes in foreign currency rates decreased sales by 8%. Recent acquisitions had a favorable impact of 1% on sales. The acquisition of Sigma-Aldrich by Merck KGaA is expected to be completed by mid-2015 and is subject to customary closing conditions.

Zacks Rank

Currently, Sigma-Aldrich has a Zacks Rank #4 (Sell), 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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SIGMA ALDRICH (SIAL): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.