Neogen (NASDAQ:NEOG) Announces Quarterly Earnings Results

Neogen (NASDAQ:NEOG) released its earnings results on Thursday. The company reported $0.09 EPS for the quarter, topping analysts’ consensus estimates 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 company had revenue of $225.30 million for the quarter, compared to the consensus estimate of $212.35 million. During the same quarter last year, the business posted ($2.82) EPS. Neogen’s quarterly revenue was down .1% compared to the same quarter last year.

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

NEOG stock traded up $2.13 during midday trading on Thursday, reaching $11.53. The company had a trading volume of 4,761,033 shares, compared to its average volume of 1,534,596. 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 stock has a 50 day moving average price of $9.37 and a 200 day moving average price of $9.60. Neogen has a fifty-two week low of $4.56 and a fifty-two week high of $11.56. The firm has a market capitalization of $2.51 billion, a PE ratio of -4.12, a P/E/G ratio of 4.21 and a beta of 1.80.

Key Headlines 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.

Institutional Trading of Neogen

Hedge funds have recently made changes to their positions in the stock. UMB Bank n.a. boosted its position in Neogen by 238.2% during 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 acquired a new stake in Neogen in the second quarter worth $53,000. Evergreen Capital Management LLC bought a new stake in Neogen in the second quarter valued at $56,000. Northwestern Mutual Wealth Management Co. lifted its stake in 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 last quarter. Finally, Osaic Holdings Inc. lifted its stake in Neogen by 183.5% in the second quarter. Osaic Holdings Inc. now owns 12,663 shares of the company’s stock valued at $61,000 after buying an additional 8,196 shares during the last quarter. Institutional investors own 96.73% of the company’s stock.

Wall Street Analyst Weigh In

NEOG has been the subject of a number of research analyst reports. Weiss Ratings downgraded Neogen from a “sell (d-)” rating to a “sell (e+)” rating in a report on Friday, July 24th. Wall Street Zen upgraded Neogen from a “hold” rating to a “buy” rating in a research note on Saturday, May 9th. 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 stock. According to MarketBeat, the company currently has a consensus rating of “Hold” and a consensus 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.