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

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

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 Performance

Shares of NEOG traded up $2.13 during mid-day trading on Thursday, hitting $11.53. The company’s stock had a trading volume of 4,761,033 shares, compared to its average volume of 2,809,236. The stock’s 50-day moving average is $9.32 and its two-hundred day moving average is $9.59. Neogen has a one year low of $4.56 and a one year high of $11.56. The company has a debt-to-equity ratio of 0.38, a quick ratio of 2.84 and a current ratio of 3.92. The firm has a market capitalization of $2.51 billion, a PE ratio of -4.12, a price-to-earnings-growth ratio of 4.11 and a beta of 1.80.

Institutional Investors Weigh In On Neogen

Several large investors have recently modified their holdings of NEOG. AQR Capital Management LLC grew its position in shares of Neogen by 217.0% during the 1st quarter. AQR Capital Management LLC now owns 52,410 shares of the company’s stock worth $443,000 after buying an additional 35,878 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its position in Neogen by 4.5% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 129,813 shares of the company’s stock worth $1,125,000 after buying an additional 5,638 shares in the last quarter. Jones Financial Companies Lllp grew its stake in Neogen by 5,687.3% in the first quarter. Jones Financial Companies Lllp now owns 33,393 shares of the company’s stock valued at $290,000 after purchasing an additional 32,816 shares in the last quarter. Goldman Sachs Group Inc. increased its stake in shares of Neogen by 14.3% during the 1st quarter. Goldman Sachs Group Inc. now owns 1,678,493 shares of the company’s stock worth $14,553,000 after purchasing an additional 209,990 shares during the last quarter. Finally, United Services Automobile Association acquired a new stake in Neogen during the 1st quarter valued at $112,000. 96.73% of the stock is currently owned by institutional investors.

More Neogen News

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.

Analyst Ratings Changes

A number of research analysts have recently commented on the company. Weiss Ratings lowered Neogen from a “sell (d-)” rating to a “sell (e+)” rating in a report on Friday, July 24th. Wall Street Zen raised Neogen from a “hold” rating to a “buy” rating in a research report on Saturday, May 9th. Two equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Hold” and a consensus price target of $10.67.

About Neogen

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.