Neogen (NASDAQ:NEOG) Posts Earnings Results, Beats Expectations By $0.03 EPS

Neogen (NASDAQ:NEOG) posted its quarterly earnings results on Thursday. The company reported $0.09 EPS for the quarter, topping the consensus estimate of $0.06 by $0.03, Briefing.com reports. Neogen had a negative net margin of 0.91% and a positive return on equity of 2.78%. The business had revenue of $225.30 million during the quarter, compared to analysts’ expectations of $212.35 million. The firm’s quarterly revenue was down .1% compared to the same quarter last year. During the same period last year, the company posted ($2.82) earnings per share.

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 Up 4.4%

NASDAQ NEOG traded up $0.51 during trading on Friday, reaching $12.04. The company’s stock had a trading volume of 3,800,402 shares, compared to its average volume of 1,719,657. The company has a current ratio of 3.82, a quick ratio of 2.84 and a debt-to-equity ratio of 0.38. The stock has a market capitalization of $2.62 billion, a PE ratio of -401.33, a PEG ratio of 5.16 and a beta of 1.80. Neogen has a 1-year low of $4.56 and a 1-year high of $12.15. The business has a 50-day moving average price of $9.44 and a 200-day moving average price of $9.62.

Institutional Investors Weigh In On Neogen

Institutional investors and hedge funds have recently modified their holdings of the business. Virtu Financial LLC bought a new position in Neogen during the fourth quarter valued at about $138,000. T. Rowe Price Investment Management Inc. boosted its stake in shares of Neogen by 249.2% during the 4th quarter. T. Rowe Price Investment Management Inc. now owns 8,181,768 shares of the company’s stock worth $57,191,000 after acquiring an additional 5,838,570 shares in the last quarter. Mercer Global Advisors Inc. ADV increased its holdings in shares of Neogen by 10.1% during the 4th quarter. Mercer Global Advisors Inc. ADV now owns 17,837 shares of the company’s stock valued at $125,000 after acquiring an additional 1,638 shares during the last quarter. Mackenzie Financial Corp raised its stake in shares of Neogen by 1.0% in the 4th quarter. Mackenzie Financial Corp now owns 7,898,439 shares of the company’s stock valued at $55,574,000 after acquiring an additional 79,010 shares in the last quarter. Finally, Tudor Investment Corp ET AL raised its stake in shares of Neogen by 4,902.6% in the 4th quarter. Tudor Investment Corp ET AL now owns 539,326 shares of the company’s stock valued at $3,770,000 after acquiring an additional 528,545 shares in the last quarter. Institutional investors and hedge funds own 96.73% of the company’s stock.

Key Stories Impacting Neogen

Here are the key news stories impacting Neogen this week:

• Positive Sentiment: Neogen reported fiscal Q4 adjusted earnings of $0.09 per share, above the $0.05 analyst consensus and substantially better than the $2.82-per-share loss reported in the year-ago quarter. Revenue of $225.3 million also exceeded estimates of $212.35 million. Neogen Beats Q4 Earnings and Revenue Estimates
• Positive Sentiment: Management forecast fiscal 2027 revenue of $880 million to $885 million, above the $851.1 million consensus estimate. First-quarter fiscal 2027 revenue guidance of $207 million to $209 million also topped the $204.9 million consensus. Neogen Fiscal 2027 Guidance
• Positive Sentiment: The company expects fiscal 2027 adjusted EBITDA of approximately $180 million to $182 million, signaling anticipated improvement in profitability and supporting the favorable investor reaction. Neogen Fiscal 2026 Results
• Neutral Sentiment: Despite the earnings beat, quarterly revenue was essentially flat year over year, down 0.1%, indicating that the stronger outlook depends on future growth rather than current top-line acceleration.
• Neutral Sentiment: Analysts’ average price target is approximately $10.67, below the stock’s recent trading level, suggesting valuation and expectations may limit additional upside. Analysts Set Neogen Price Target
• Negative Sentiment: Neogen plans to increase research and development spending by roughly 50% in fiscal 2027. Although intended to support longer-term growth, the investment could pressure near-term margins and earnings.

Analysts Set New Price Targets

NEOG has been the subject of a number of research reports. Weiss Ratings lowered shares of Neogen from a “sell (d-)” rating to a “sell (e+)” rating in a research note on Friday, July 24th. Wall Street Zen raised shares of 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 issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company has an average rating of “Hold” and a consensus target price 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.