Neogen (NASDAQ:NEOG) Hits New 12-Month High After Earnings Beat

Key Points

• Neogen’s shares surged to a new 52-week high after fiscal Q4 earnings of $0.09 per share beat the $0.05 consensus, while revenue of $225.3 million exceeded the $212.35 million estimate.
• Management issued an above-consensus fiscal 2027 outlook, forecasting revenue of $880 million to $885 million and adjusted EBITDA of $180 million to $182 million. First-quarter revenue guidance also topped analysts’ expectations.
• Despite the positive results, revenue was essentially flat year over year and Neogen plans to increase research and development spending by about 50%, which could limit near-term profitability and margin expansion.

Neogen Corporation (NASDAQ:NEOG - Get Free Report)'s stock price reached a new 52-week high during mid-day trading on Friday following a better than expected earnings announcement. The stock traded as high as $11.56 and last traded at $11.53, with a volume of 4761033 shares trading hands. The stock had previously closed at $9.40.

The company reported $0.09 EPS for the quarter, beating the consensus estimate of $0.05 by $0.04. Neogen had a negative net margin of 69.93% and a positive return on equity of 2.35%. The firm had revenue of $225.30 million for the quarter, compared to analysts' expectations of $212.35 million. During the same quarter last year, the company earned ($2.82) EPS. Neogen's quarterly revenue was down .1% on a year-over-year basis.

Key Neogen News

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.

Analysts Set New Price Targets

NEOG has been the topic of several recent analyst reports. Weiss Ratings cut Neogen from a "sell (d-)" rating to a "sell (e+)" rating in a report on Friday, July 24th. Wall Street Zen raised 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 issued a Sell rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Hold" and an average target price of $10.67.

Hedge Funds Weigh In On Neogen

Several large investors have recently made changes to their positions in NEOG. Huntington National Bank boosted its holdings in shares of Neogen by 8.4% during the 4th quarter. Huntington National Bank now owns 13,552 shares of the company's stock worth $95,000 after buying an additional 1,045 shares during the period. ProShare Advisors LLC grew its stake in Neogen by 3.2% in the 4th quarter. ProShare Advisors LLC now owns 42,509 shares of the company's stock valued at $297,000 after buying an additional 1,331 shares during the last quarter. State of Alaska Department of Revenue raised its holdings in Neogen by 1.2% in the 4th quarter. State of Alaska Department of Revenue now owns 110,645 shares of the company's stock worth $773,000 after acquiring an additional 1,353 shares during the period. Evergreen Capital Management LLC raised its holdings in Neogen by 12.3% in the 4th quarter. Evergreen Capital Management LLC now owns 13,753 shares of the company's stock worth $96,000 after acquiring an additional 1,504 shares during the period. Finally, Mercer Global Advisors Inc. ADV lifted its position in Neogen by 10.1% during the 4th quarter. Mercer Global Advisors Inc. ADV now owns 17,837 shares of the company's stock worth $125,000 after acquiring an additional 1,638 shares during the last quarter. Institutional investors own 96.73% of the company's stock.

Neogen Stock Performance

The company has a debt-to-equity ratio of 0.38, a quick ratio of 2.84 and a current ratio of 3.92. The stock's 50-day simple moving average is $9.37 and its two-hundred day simple moving average is $9.60. The stock has a market cap of $2.51 billion, a price-to-earnings ratio of -4.12, a price-to-earnings-growth ratio of 4.21 and a beta of 1.80.

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.

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