Neogen (NASDAQ:NEOG) Posts Earnings Results, Beats Expectations By $0.04 EPS

Neogen (NASDAQ:NEOG) released its earnings results on Thursday. The company reported $0.09 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.05 by $0.04, Briefing.com reports. Neogen had a positive return on equity of 2.35% and a negative net margin of 69.93%.The firm had revenue of $225.30 million for the quarter, compared to the consensus estimate of $212.35 million. During the same period in the prior year, the firm earned ($2.82) EPS. The firm’s revenue was down .1% on a year-over-year basis.

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

• Food safety core growth accelerated to 5.8% in the fourth quarter, the company’s strongest level since 2023, led by Indicator Testing, Culture Media, bacteria, and general sanitation products.
• Animal safety returned to year-over-year core growth and increased 7% sequentially as most global supply issues were resolved; improving producer profitability and potential herd recovery provide additional support, though management expects only a modest near-term contribution from screwworm products.
• Fiscal 2027 guidance calls for revenue of $880 million-$885 million and adjusted EBITDA of $180 million-$182 million, implying approximately 3% core growth and a 20.5% adjusted EBITDA margin. Management expects margin expansion to be limited by increased investments in R&D, commercial infrastructure, and transformation initiatives.
• Neogen plans to increase R&D spending by approximately 50% and is expanding its Petrifilm innovation capabilities, targeting two new SKUs annually and expecting innovation investments to contribute meaningfully to revenue growth from fiscal 2029 onward.
• The company reduced inventory by more than $36 million year over year while improving its on-time-and-full delivery rate by 40%; it also paid down $20 million of debt and expects the planned Genomics divestiture to generate approximately $140 million in net proceeds for debt reduction and business investment.

Neogen Stock Up 22.7%

NASDAQ NEOG traded up $2.13 on Thursday, hitting $11.53. 4,761,033 shares of the stock were exchanged, compared to its average volume of 2,809,236. Neogen has a fifty-two week low of $4.56 and a fifty-two week high of $11.56. The company has a 50-day moving average price of $9.32 and a 200-day moving average price of $9.59. The company has a quick ratio of 2.84, a current ratio of 3.92 and a debt-to-equity ratio of 0.38. The company has a market cap of $2.51 billion, a PE ratio of -4.12, a PEG ratio of 4.11 and a beta of 1.80.

Institutional Trading of Neogen

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Cibc World Markets Corp acquired a new stake in Neogen in the fourth quarter valued at about $47,983,000. T. Rowe Price Investment Management Inc. increased its position in Neogen by 249.2% during the fourth quarter. T. Rowe Price Investment Management Inc. now owns 8,181,768 shares of the company’s stock worth $57,191,000 after buying an additional 5,838,570 shares in the last quarter. Bank of Montreal Can lifted its position in shares of Neogen by 4,059.4% in the third quarter. Bank of Montreal Can now owns 4,592,218 shares of the company’s stock valued at $26,222,000 after acquiring an additional 4,481,812 shares in the last quarter. BNP Paribas Financial Markets boosted its stake in shares of Neogen by 809.8% during the 3rd quarter. BNP Paribas Financial Markets now owns 2,660,884 shares of the company’s stock worth $15,194,000 after purchasing an additional 2,368,410 shares during the last quarter. Finally, Ameriprise Financial Inc. grew its stake in Neogen by 169.5% in the 2nd quarter. Ameriprise Financial Inc. now owns 3,079,123 shares of the company’s stock worth $14,718,000 after acquiring an additional 1,936,569 shares during the period. 96.73% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

A number of equities analysts have issued reports on the company. Wall Street Zen upgraded Neogen from a “hold” rating to a “buy” rating in a research report on Saturday, May 9th. Weiss Ratings downgraded shares of Neogen from a “sell (d-)” rating to a “sell (e+)” rating in a report on Friday, July 24th. Two investment analysts have rated the stock with a Buy rating, three have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus price target of $10.67.

Key Stories Impacting Neogen

Here are the key news stories impacting Neogen this week:

• Positive Sentiment: Quarterly results exceeded expectations: Neogen reported fiscal Q4 earnings of $0.09 per share, versus the $0.05 consensus estimate, while revenue of $225.3 million surpassed expectations of $212.35 million. The earnings result also improved substantially from the prior-year loss. Neogen Beats Q4 Earnings and Revenue Estimates
• Positive Sentiment: Above-consensus outlook: Management forecast fiscal 2027 revenue of $880 million to $885 million, well above the roughly $851.1 million analyst consensus. First-quarter fiscal 2027 revenue guidance of $207 million to $209 million also topped the $204.9 million consensus. The company outlined adjusted EBITDA guidance of $180 million to $182 million for fiscal 2027. Neogen Fiscal 2027 Outlook
• Neutral Sentiment: Investment may weigh on near-term profitability: Neogen plans to increase research and development spending by about 50%, signaling continued investment in future growth but potentially limiting margin expansion in the near term. Neogen Q4 Earnings Call Transcript
• Negative Sentiment: Revenue growth remained muted: Fiscal Q4 revenue was essentially flat year over year, declining 0.1%, so the stock’s positive reaction depends heavily on the earnings beat and forward guidance rather than current top-line growth.

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.