Neogen (NASDAQ:NEOG) Issues Quarterly Earnings Results

Neogen (NASDAQ:NEOG) posted its quarterly earnings data on Thursday. The company reported $0.09 EPS for the quarter, beating analysts’ consensus estimates of $0.04 by $0.05, Briefing.com reports. Neogen had a negative net margin of 68.47% and a positive return on equity of 2.14%. The company’s revenue for the quarter was down 4.4% compared to the same quarter last year.

Here are the key takeaways from Neogen’s conference call:

• Reported solid core growth in food safety (4% core) and lifted adjusted EBITDA margin to 22.8% with adjusted gross margin around 51.7%, signaling improved cost discipline and operational leverage.
• Significant supplier disruptions at third-party manufacturers materially impacted the animal safety segment (core down ~8.7%), causing backorders, quality/scrap issues, and prompting a tightened supplier qualification and review program.
• The in-house Petrifilm manufacturing transition remains on track for November 2026 and the company is adding an R&D pilot line to enable custom SKUs and higher incremental margins as volumes scale.
• Agreed sale of the genomics unit for $160 million (≈$140M net) is expected to be used to pay down debt and reduce net debt/adjusted-EBITDA to below 3x by end of 2026.
• Raised FY26 revenue guide to $857–860M while maintaining adjusted EBITDA guidance of $175M, but management flags FX headwinds, elevated freight (~$1.5M/quarter) and lingering supply issues that support a conservative near-term outlook.

Neogen Stock Up 3.6%

NEOG opened at $10.34 on Thursday. The stock has a fifty day moving average of $10.09 and a 200-day moving average of $7.97. The company has a market capitalization of $2.25 billion, a P/E ratio of -3.73 and a beta of 1.97. Neogen has a fifty-two week low of $3.87 and a fifty-two week high of $11.43. The company has a debt-to-equity ratio of 0.38, a quick ratio of 2.80 and a current ratio of 3.91.

Hedge Funds Weigh In On Neogen

Hedge funds have recently bought and sold shares of the business. UMB Bank n.a. boosted its holdings in Neogen by 238.2% in the 4th quarter. UMB Bank n.a. now owns 6,422 shares of the company’s stock valued at $45,000 after purchasing an additional 4,523 shares during the period. Cresset Asset Management LLC bought a new position in shares of Neogen during the second quarter worth approximately $53,000. Evergreen Capital Management LLC acquired a new stake in shares of Neogen in the second quarter valued at approximately $56,000. Northwestern Mutual Wealth Management Co. boosted its stake in shares of Neogen by 3,158.4% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 8,309 shares of the company’s stock valued at $58,000 after buying an additional 8,054 shares during the period. Finally, Osaic Holdings Inc. grew its position in Neogen by 183.5% during the second quarter. Osaic Holdings Inc. now owns 12,663 shares of the company’s stock worth $61,000 after buying an additional 8,196 shares in the last quarter. 96.73% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

Several equities analysts have commented on the stock. Piper Sandler reiterated a “neutral” rating and issued a $10.00 price objective (up from $6.50) on shares of Neogen in a report on Monday, January 12th. Wall Street Zen raised shares of Neogen from a “hold” rating to a “buy” rating in a report on Saturday, February 14th. William Blair reiterated a “market perform” rating on shares of Neogen in a research note on Monday, March 2nd. Guggenheim reissued a “buy” rating and issued a $12.00 price target (up from $8.00) on shares of Neogen in a report on Friday, January 9th. Finally, Weiss Ratings restated a “sell (e+)” rating on shares of Neogen in a research report on Monday, December 29th. Two investment analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and an average price target of $10.67.

Neogen Company Profile

Neogen Corporation is a global provider of food and animal safety products, offering a broad portfolio of diagnostic and testing solutions. Headquartered in Lansing, Michigan, the company develops and manufactures tests designed to detect foodborne pathogens, allergens and toxins in food, beverage and environmental samples. Since its founding in 1982, Neogen has focused on delivering rapid, accurate and user‐friendly assays to food processors, grain handlers and quality laboratories around the world.

In the food safety arena, Neogen’s product lineup includes immunoassay kits, molecular diagnostics and enrichment media for pathogens such as Salmonella, Listeria and E.