Neogen (NASDAQ:NEOG) Releases Earnings Results, Beats Expectations By $0.12 EPS

Key Points

• Neogen Corporation reported a quarterly EPS of $0.17, significantly beating analysts' expectations of $0.05 by $0.12.
• The company's revenue for the quarter was $209.20 million, exceeding expectations of $203.93 million, though down 3.6% year-over-year.
• Neogen's stock saw a 16.5% increase following the earnings announcement, with institutional investors holding approximately 96.73% of the company's stock.

Neogen (NASDAQ:NEOG - Get Free Report) announced its quarterly earnings results on Thursday. The company reported $0.17 EPS for the quarter, beating analysts' consensus estimates of $0.05 by $0.12, reports. Neogen had a positive return on equity of 2.39% and a negative net margin of 122.06%.The company had revenue of $209.20 million during the quarter, compared to analysts' expectations of $203.93 million. During the same period in the prior year, the business posted $0.07 EPS. Neogen's revenue was down 3.6% on a year-over-year basis. Neogen updated its FY 2026 guidance to EPS.

Neogen Stock Up 16.5%

NASDAQ NEOG traded up $0.96 on Thursday, reaching $6.78. The company had a trading volume of 12,462,252 shares, compared to its average volume of 8,077,099. The stock has a market capitalization of $1.47 billion, a P/E ratio of -1.35 and a beta of 1.90. The company has a quick ratio of 2.22, a current ratio of 3.32 and a debt-to-equity ratio of 0.42. The company's fifty day moving average is $5.54 and its 200 day moving average is $5.66. Neogen has a 52-week low of $3.87 and a 52-week high of $16.79.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in NEOG. Ameriprise Financial Inc. raised its holdings in shares of Neogen by 169.5% in the 2nd quarter. Ameriprise Financial Inc. now owns 3,079,123 shares of the company's stock valued at $14,718,000 after acquiring an additional 1,936,569 shares in the last quarter. Federated Hermes Inc. bought a new position in Neogen during the 2nd quarter worth approximately $6,039,000. Tensile Capital Management LP bought a new stake in shares of Neogen in the 2nd quarter worth approximately $4,853,000. Squarepoint Ops LLC grew its position in shares of Neogen by 178.4% in the 2nd quarter. Squarepoint Ops LLC now owns 1,247,973 shares of the company's stock worth $5,965,000 after buying an additional 799,736 shares during the last quarter. Finally, Marshall Wace LLP bought a new stake in shares of Neogen in the 2nd quarter worth approximately $2,593,000. Institutional investors own 96.73% of the company's stock.

Wall Street Analysts Forecast Growth

Several research firms have weighed in on NEOG. Guggenheim lowered their price objective on Neogen from $13.00 to $10.00 and set a "buy" rating on the stock in a research report on Monday, June 30th. William Blair downgraded Neogen from an "outperform" rating to a "market perform" rating in a research note on Tuesday, July 29th. Zacks Research raised Neogen from a "strong sell" rating to a "hold" rating in a research note on Wednesday, August 20th. Weiss Ratings reaffirmed a "sell (e+)" rating on shares of Neogen in a research note on Wednesday. Finally, CJS Securities assumed coverage on Neogen in a research note on Monday, September 29th. They issued a "market perform" rating and a $10.00 price target for the company. One equities research analyst has rated the stock with a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, Neogen currently has an average rating of "Hold" and an average target price of $8.33.

About Neogen

Neogen Corporation, together with its subsidiaries, engages in the development, manufacture, and marketing of various products and services dedicated to food and animal safety worldwide. It operates through two segments, Food Safety and Animal Safety. The Food Safety segment offers diagnostic test kits and related products to detect dangerous and unintended substances in food and animal feed, including foodborne pathogens, spoilage organisms, natural toxins, food allergens, genetic modifications, ruminant by-products, meat speciation, drug residues, pesticide residues, and general sanitation concerns; and AccuPoint Advanced rapid sanitation test to detect the presence of adenosine triphosphate, a chemical found in living cells, as well as provides genomics-based diagnostic technology and software systems that help testers to objectively analyze and store their results and perform analysis on the results from multiple locations over extended periods.

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