Neogen (NASDAQ:NEOG) Issues Quarterly Earnings Results, Beats Expectations By $0.05 EPS

Neogen (NASDAQ:NEOG) released its earnings results on Thursday. The company reported $0.09 EPS for the quarter, beating the consensus estimate of $0.04 by $0.05, Briefing.com reports. Neogen had a negative net margin of 68.47% and a positive return on equity of 2.14%. The business had revenue of $211.20 million during the quarter, compared to analyst estimates of $204.62 million. The firm’s quarterly revenue was down 4.4% on a year-over-year basis.

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 3.0%

Shares of Neogen stock opened at $10.03 on Friday. The stock has a 50-day moving average price of $10.09 and a 200 day moving average price of $7.99. The company has a market cap of $2.18 billion, a P/E ratio of -3.62 and a beta of 1.97. The company has a current ratio of 3.91, a quick ratio of 2.80 and a debt-to-equity ratio of 0.38. Neogen has a 1 year low of $4.32 and a 1 year high of $11.43.

Trending Headlines about Neogen

Here are the key news stories impacting Neogen this week:

• Positive Sentiment: Quarterly beat — Neogen reported $0.09 EPS (vs. ~$0.04 consensus) and revenue of $211.2M (above estimates), showing underlying operational improvement that beat street expectations. Neogen Q3 Press Release
• Positive Sentiment: Raised top‑line guidance — the company lifted FY2026 revenue guidance to about $857–$860M (vs. consensus ~ $850.6M), which signals management expects recovery in revenue drivers later in the year. MarketWatch: Neogen Raises Outlook
• Positive Sentiment: Food Safety strength — management highlighted continued growth in the Food Safety segment, which is stabilizing core revenue and is the primary growth engine going forward. MSN: Food Safety Drives Growth
• Neutral Sentiment: Corporate update — Neogen named Jennifer Evans Stacey as Chief Legal & Compliance Officer and Board Secretary, a governance/ops detail unlikely to move near‑term fundamentals. Yahoo: Executive Appointment
• Negative Sentiment: Supplier/third‑party headwinds trimmed revenue — revenue was down ~4.4% YoY and management cited supplier constraints and third‑party issues that reduced product availability and weighed on the Animal Safety business. MarketWatch: Supplier Challenges
• Negative Sentiment: Animal Safety weakness and margin pressure — the Animal Safety segment and third‑party setbacks are denting margins (company reported a large negative net margin), prompting investor concern about earnings quality despite the beat. Barron’s: Guidance Hike Not Helping
• Negative Sentiment: Cautious management commentary — the earnings call conveyed a measured tone about near‑term recovery and operational issues, which likely amplified selling despite the headline beat and guidance bump. TipRanks: Earnings Call Highlights

Institutional Investors Weigh In On Neogen

Several hedge funds have recently bought and sold shares of NEOG. UMB Bank n.a. lifted its stake 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 in the last quarter. Cresset Asset Management LLC purchased a new stake in Neogen in the 2nd quarter worth about $53,000. Evergreen Capital Management LLC purchased a new stake in Neogen in the 2nd quarter worth about $56,000. Northwestern Mutual Wealth Management Co. lifted its stake in Neogen by 3,158.4% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 8,309 shares of the company’s stock worth $58,000 after acquiring an additional 8,054 shares in the last quarter. Finally, Osaic Holdings Inc. lifted its stake in Neogen by 183.5% in the 2nd quarter. Osaic Holdings Inc. now owns 12,663 shares of the company’s stock worth $61,000 after acquiring an additional 8,196 shares in the last quarter. 96.73% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several brokerages have recently commented on NEOG. Wall Street Zen raised Neogen from a “hold” rating to a “buy” rating in a report on Saturday, February 14th. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Neogen in a report on Monday, December 29th. Guggenheim reaffirmed a “buy” rating and set a $12.00 target price (up from $8.00) on shares of Neogen in a report on Friday, January 9th. William Blair reaffirmed a “market perform” rating on shares of Neogen in a report on Monday, March 2nd. Finally, Piper Sandler reaffirmed a “neutral” rating and set a $10.00 target price (up from $6.50) on shares of Neogen in a report on Monday, January 12th. Two 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 stock. According to data from MarketBeat, Neogen has an average rating of “Hold” and a consensus target price 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.