Neogen (NASDAQ:NEOG) Shares Gap Up Following Strong Earnings

Neogen Corporation (NASDAQ:NEOG)’s stock price gapped up prior to trading on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $11.96, but opened at $12.61. Neogen shares last traded at $11.56, with a volume of 1,574,885 shares trading hands.

The company reported $0.08 EPS for the quarter, topping analysts’ consensus estimates of $0.05 by $0.03. Neogen had a negative net margin of 0.91% and a positive return on equity of 2.78%. The firm had revenue of $222.80 million during the quarter, compared to analysts’ expectations of $208.18 million. During the same period in the previous year, the company earned $0.04 EPS. The firm’s revenue for the quarter was up 6.5% compared to the same quarter last year.

Neogen News Roundup

Here are the key news stories impacting Neogen this week:

• Positive Sentiment: Neogen reported fiscal Q1 revenue of $222.8 million, up 6.5% year over year and above the $208.2 million analyst estimate. Adjusted earnings were $0.08 per share versus the $0.05 consensus and $0.04 in the prior-year quarter. Neogen Q1 Earnings and Revenues Beat Estimates
• Positive Sentiment: Management raised fiscal 2027 revenue guidance to $885 million-$890 million, slightly above the $883.2 million consensus, and projected adjusted EBITDA of $181 million-$183 million. Food Safety revenue increased 7.4% to $163.2 million, while Animal Safety revenue rose 4.2% to $59.6 million. Neogen Fiscal 2027 Guidance
• Positive Sentiment: The earnings update and outlook prompted reports that NEOG shares swung higher in premarket trading, reflecting investor confidence in sales growth and the raised forecast. Neogen Earnings Call Transcript
• Neutral Sentiment: Neogen expects to begin a multi-quarter transition of Petrifilm manufacturing in November 2026. The change could support longer-term operations but introduces execution risk during the transition. The company also expects regulatory reviews of its proposed global Genomics sale to Zoetis to conclude by the end of December. Neogen First-Quarter Results
• Negative Sentiment: Despite the adjusted EPS beat, Neogen reported a $11.9 million net loss, or $0.05 per diluted share, compared with $36.3 million of net income a year earlier. Its reported net margin remained negative, which may limit enthusiasm if profitability does not improve.
• Negative Sentiment: Pomerantz and Levi & Korsinsky announced investigations related to shareholder claims, including the earlier HYCOAT equine-product warning and recall. These legal developments add reputational and potential financial risk. Pomerantz Investor Alert

Analysts Set New Price Targets

A number of analysts have recently issued reports on the stock. Wall Street Zen raised shares of Neogen from a “buy” rating to a “strong-buy” rating in a research note on Saturday. Guggenheim reaffirmed a “buy” rating and issued a $14.00 price target (up from $12.00) on shares of Neogen in a research note on Wednesday, September 30th. Weiss Ratings upgraded shares of Neogen from a “sell (e+)” rating to a “sell (d-)” rating in a report on Friday, August 7th. Finally, Piper Sandler upgraded shares of Neogen from a “neutral” rating to an “overweight” rating and upped their target price for the stock from $13.00 to $14.00 in a research note on Wednesday, August 26th. Three equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of “Hold” and a consensus target price of $12.67.

Hedge Funds Weigh In On Neogen

Institutional investors have recently made changes to their positions in the company. BlackRock Inc. bought a new stake in shares of Neogen in the second quarter valued at about $300,545,000. Dimensional Fund Advisors LP raised its position in shares of Neogen by 23.4% in the 1st quarter. Dimensional Fund Advisors LP now owns 9,132,021 shares of the company’s stock worth $84,831,000 after acquiring an additional 1,733,767 shares in the last quarter. SG Americas Securities LLC lifted its stake in shares of Neogen by 287.4% during the 1st quarter. SG Americas Securities LLC now owns 6,266,033 shares of the company’s stock worth $58,211,000 after purchasing an additional 4,648,436 shares during the last quarter. Bamco Inc. NY bought a new position in shares of Neogen during the 2nd quarter worth approximately $45,094,000. Finally, Cibc World Market Inc. acquired a new position in shares of Neogen during the second quarter worth $31,469,000. Hedge funds and other institutional investors own 96.73% of the company’s stock.

Neogen Stock Performance

The firm has a fifty day moving average price of $12.08 and a 200 day moving average price of $10.25. The stock has a market cap of $2.52 billion, a PE ratio of -387.03, a price-to-earnings-growth ratio of 4.88 and a beta of 1.79. The company has a debt-to-equity ratio of 0.38, a quick ratio of 2.91 and a current ratio of 3.82.

Neogen Company Profile

Neogen Corporation is a global provider of food safety and animal safety products and services. The company develops diagnostic tests, laboratory products, and related solutions that help customers detect foodborne pathogens, allergens, toxins, residues, and other contaminants throughout the food production process.

Its food safety portfolio includes test kits, culture media, molecular testing systems, sanitation monitoring products, and laboratory supplies used by food manufacturers, processors, retailers, and regulatory organizations.