NEW YORK (GenomeWeb News) – Sigma-Aldrich today reported a 2 percent increase in fourth quarter revenues to $582 million, a new quarterly high, but short of analysts' expectations.
The figure for the three months ended Dec. 31, 2010, compares to $573 million for the fourth quarter of 2009. Wall Street expected revenues for the quarter of $587.5 million.
The firm's R&D costs for the fourth quarter increased 6 percent to $17 million from $16 million, while SG&A costs rose 7 percent to $143 million from $134 million a year ago.
Sigma's net income crept up to $94 million, or $0.76 per share, compared to $93 million, $0.75 per share, a year ago. On an adjusted basis, EPS for the quarter was $0.83 per share, compared to $0.80 a year ago. Analysts' estimates were for $0.80 per share.
For full-year 2010, Sigma-Aldrich posted a 6 percent increase in revenues to $2.27 billion from $2.15 billion in 2009, but short of the $2.28 billion expected by Wall Street.
Its R&D costs rose to $66 million for the year, up from $63 million a year ago, and SG&A costs increased to $548 million from $518 million.
Sigma's 2010 net income rose 11 percent to $384 million, or $3.12 per share, from $347 million, or $2.80 per share. On an adjusted basis, EPS was $3.31 for the year, compared to $2.85 a year ago, and above analysts' estimates of $3.29 per share.
As of Dec. 31, Sigma-Aldrich had $569 million in cash and cash equivalents.
For 2011, the firm said that organic sales are expected to grow in the mid-single digit range. Adjusted EPS is expected to be in the range of $3.45 to $3.60.
In a statement, Rakesh Sachdev, President and CEO of Sigma-Aldrich, said, "Market conditions are not likely to change much, so our plans are to continue to execute on our strategic initiatives to drive sales of our analytical, biology, chemistry, and materials science products, to continue the high-single digit organic growth in SAFC, and to enhance our e-commerce and Asia Pacific-Latin American market sales."
In early Wednesday trade on the Nasdaq, shares of Sigma-Aldrich were down 6 percent at $61.61.