NEW YORK (GenomeWeb News) – Sigma-Aldrich today reported that revenues for its fourth quarter rose 4 percent year over year as the firm beat the consensus analyst estimate on the top and bottom lines.
Total revenues for the three months ended Dec. 31, 2013 reached $684 million, up from $655 million a year ago and above the average analyst estimate of $676 million.
By business unit, Research grew 1 percent to $347 million from $343 million in the year-ago period, Applied increased 7 percent to $156 million from $146 million, and SAFC Commercial rose 9 percent to $181 million from $166 million.
Sigma-Aldrich posted a profit of $131 million, or $1.08 per share, in the quarter, compared to a profit of $116 million, or $.96 per share, a year ago. On an adjusted basis, EPS was $1.02, edging out the average Wall Street expectation of $1.01.
The company's R&D spending was up 6 percent to $17 million in the quarter, compared to $16 million in Q4 2012. Its SG&A costs rose 5 percent to $154 million from
Sigma-Aldrich's full-year 2013 revenues were up 3 percent to $2.70 billion from $2.62 billion, matching the consensus Wall Street estimate.
Research revenues were flat year over year at $1.40 billion, while Applied was up 5 percent to $629 million from $598 million. SAFC Commercial grew 7 percent to $673 million from $627 million.
The firm's profits grew to $491 million, or $4.06 per share, in 2013, compared to $460 million, or $3.77 per share, a year ago. Adjusted EPS of $4.12 matched the average analyst estimate.
The company trimmed its R&D spending 4 percent year over year to $66 million from $69 million, but grew its SG&A spending 1 percent to $612 million from $605 million.
Sigma-Aldrich ended 2013 with $722 million in cash and cash equivalents.
In a statement, President and CEO Rakesh Sachdev said the firm had a "successful, productive year." Its customer-focused strategy in Research resulted in an improving pharma organic sales performance throughout the year, which helped offset softness in academic/government sales.
Applied "had a successful debut year with strong growth in the diagnostics and testing segment," he added, and SAFC Commercial had a "solid" year in 2013, finishing "on a strong note with double-digit organic sales growth in the fourth quarter."
The company said that for 2014 organic sales growth is expected to be in the low- to mid-single digits. Adjusted EPS is expected to be in the range of $4.30 to $4.40. Net cash from operating activities is estimated to exceed $600 million, while capital expenditures are expected to be about $130 million. Free cash flow is anticipated to be more than $475 million.
In morning trading Thursday, shares of Sigma-Aldrich were up a fraction of 1 percent at $90.95 on the Nasdaq.