Neogen (NASDAQ:NEOG) Releases Earnings Results, Beats Estimates By $0.05 EPS

Neogen (NASDAQ:NEOG) announced its quarterly earnings data on Thursday. The company reported $0.09 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.04 by $0.05, Briefing.com reports. The company had revenue of $211.20 million for the quarter, compared to analysts’ expectations of $204.62 million. Neogen had a negative net margin of 68.47% and a positive return on equity of 2.14%. Neogen’s quarterly revenue 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 Down 4.4%

Shares of NASDAQ:NEOG opened at $9.88 on Thursday. The company has a quick ratio of 2.80, a current ratio of 3.91 and a debt-to-equity ratio of 0.38. The company has a market capitalization of $2.15 billion, a P/E ratio of -3.33 and a beta of 1.97. Neogen has a 52-week low of $4.32 and a 52-week high of $11.43. The stock’s fifty day simple moving average is $10.09 and its 200-day simple moving average is $7.97.

Analysts Set New Price Targets

A number of analysts recently weighed in on NEOG shares. William Blair restated a “market perform” rating on shares of Neogen in a research note on Monday, March 2nd. Wall Street Zen upgraded shares of Neogen from a “hold” rating to a “buy” rating in a report on Saturday, February 14th. CJS Securities upgraded shares of Neogen from a “market perform” rating to an “outperform” rating and set a $10.00 price objective for the company in a research note on Wednesday, December 10th. Weiss Ratings restated a “sell (e+)” rating on shares of Neogen in a research report on Monday, December 29th. Finally, Guggenheim reiterated a “buy” rating and issued a $12.00 price objective (up from $8.00) on shares of Neogen in a research report on Friday, January 9th. Two analysts have rated the stock with a Buy rating, three have given a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Hold” and an average price target of $10.67.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in NEOG. Mercer Global Advisors Inc. ADV raised its position in shares of Neogen by 10.1% in the 4th quarter. Mercer Global Advisors Inc. ADV now owns 17,837 shares of the company’s stock worth $125,000 after buying an additional 1,638 shares during the period. California State Teachers Retirement System grew its holdings in shares of Neogen by 1.1% during the 2nd quarter. California State Teachers Retirement System now owns 191,084 shares of the company’s stock worth $913,000 after purchasing an additional 2,166 shares during the period. Commerce Bank increased its position in Neogen by 12.2% during the 4th quarter. Commerce Bank now owns 29,262 shares of the company’s stock worth $205,000 after purchasing an additional 3,184 shares in the last quarter. Gallagher Fiduciary Advisors LLC lifted its position in Neogen by 20.5% during the 2nd quarter. Gallagher Fiduciary Advisors LLC now owns 22,737 shares of the company’s stock worth $109,000 after acquiring an additional 3,867 shares in the last quarter. Finally, 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 worth $45,000 after acquiring an additional 4,523 shares during the period. Institutional investors and hedge funds own 96.73% of the company’s stock.

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.