Neogen (NASDAQ:NEOG) Shares Gap Up After Strong Earnings

Key Points

• Neogen exceeded quarterly expectations: Fiscal Q1 revenue rose 6.5% year over year to $222.8 million, above the $208.2 million consensus, while adjusted EPS came in at $0.08 versus the $0.05 estimate.
• Management raised its outlook: Fiscal 2027 revenue guidance increased to $885 million–$890 million, with adjusted EBITDA projected at $181 million–$183 million. Food Safety revenue grew 7.4%, and Animal Safety revenue increased 4.2%.
• Risks remain despite the positive earnings reaction: Neogen posted an $11.9 million net loss, while upcoming manufacturing changes, the proposed Genomics sale, and shareholder investigations related to the HYCOAT recall could create execution, legal, and reputational challenges.

Neogen Corporation (NASDAQ:NEOG - Get Free Report)'s share price gapped up before the market opened on Wednesday following a better than expected earnings announcement. The stock had previously closed at $11.96, but opened at $12.61. Neogen shares last traded at $11.56, with a volume of 1,574,885 shares.

The company reported $0.08 EPS for the quarter, beating the consensus estimate of $0.05 by $0.03. Neogen had a positive return on equity of 2.78% and a negative net margin of 0.91%.The company had revenue of $222.80 million for the quarter, compared to analysts' expectations of $208.18 million. During the same period last year, the firm posted $0.04 earnings per share. Neogen's revenue was up 6.5% compared to the same quarter last year.

Key Neogen News

Here are the key news stories impacting Neogen this week:

• Positive Sentiment: Neogen reported fiscal Q1 revenue of $222.8 million, up 6.5% year over year and above the $208.2 million analyst estimate. Adjusted earnings were $0.08 per share versus the $0.05 consensus and $0.04 in the prior-year quarter. Neogen Q1 Earnings and Revenues Beat Estimates
• Positive Sentiment: Management raised fiscal 2027 revenue guidance to $885 million-$890 million, slightly above the $883.2 million consensus, and projected adjusted EBITDA of $181 million-$183 million. Food Safety revenue increased 7.4% to $163.2 million, while Animal Safety revenue rose 4.2% to $59.6 million. Neogen Fiscal 2027 Guidance
• Positive Sentiment: The earnings update and outlook prompted reports that NEOG shares swung higher in premarket trading, reflecting investor confidence in sales growth and the raised forecast. Neogen Earnings Call Transcript
• Neutral Sentiment: Neogen expects to begin a multi-quarter transition of Petrifilm manufacturing in November 2026. The change could support longer-term operations but introduces execution risk during the transition. The company also expects regulatory reviews of its proposed global Genomics sale to Zoetis to conclude by the end of December. Neogen First-Quarter Results
• Negative Sentiment: Despite the adjusted EPS beat, Neogen reported a $11.9 million net loss, or $0.05 per diluted share, compared with $36.3 million of net income a year earlier. Its reported net margin remained negative, which may limit enthusiasm if profitability does not improve.
• Negative Sentiment: Pomerantz and Levi & Korsinsky announced investigations related to shareholder claims, including the earlier HYCOAT equine-product warning and recall. These legal developments add reputational and potential financial risk. Pomerantz Investor Alert

Wall Street Analyst Weigh In

NEOG has been the subject of a number of recent research reports. Weiss Ratings upgraded Neogen from a "sell (e+)" rating to a "sell (d-)" rating in a research note on Friday, August 7th. Wall Street Zen upgraded shares of Neogen from a "buy" rating to a "strong-buy" rating in a research report on Saturday. Guggenheim reaffirmed a "buy" rating and issued a $14.00 target price (up from $12.00) on shares of Neogen in a report on Wednesday, September 30th. Finally, Piper Sandler upgraded Neogen from a "neutral" rating to an "overweight" rating and increased their price target for the stock from $13.00 to $14.00 in a research note on Wednesday, August 26th. Three investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average price target of $12.67.

Institutional Investors Weigh In On Neogen

Several large investors have recently made changes to their positions in the company. Nykredit A S bought a new position in Neogen during the second quarter valued at approximately $28,000. Public Employees Retirement System of Ohio bought a new stake in Neogen in the 2nd quarter worth approximately $34,000. Integrated Wealth Concepts LLC purchased a new stake in shares of Neogen during the 2nd quarter worth approximately $73,000. Sequoia Financial Advisors LLC bought a new position in Neogen during the second quarter valued at $94,000. Finally, Ieq Capital LLC purchased a new position in Neogen in the second quarter worth about $95,000. 96.73% of the stock is owned by institutional investors.

Neogen Trading Down 3.3%

The company has a debt-to-equity ratio of 0.38, a quick ratio of 2.91 and a current ratio of 3.82. The stock has a fifty day moving average price of $12.08 and a 200 day moving average price of $10.25. The stock has a market cap of $2.52 billion, a PE ratio of -387.03, a PEG ratio of 4.88 and a beta of 1.79.

Neogen Company Profile

Neogen Corporation is a global provider of food safety and animal safety products and services. The company develops diagnostic tests, laboratory products, and related solutions that help customers detect foodborne pathogens, allergens, toxins, residues, and other contaminants throughout the food production process.

Its food safety portfolio includes test kits, culture media, molecular testing systems, sanitation monitoring products, and laboratory supplies used by food manufacturers, processors, retailers, and regulatory organizations.

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