Sidoti Expects Higher Earnings for Neo Performance Materials

Key Points

• Sidoti sharply raised its earnings outlook for Neo Performance Materials, lifting Q2 2026 EPS to $0.65 from $0.41 and FY2026 EPS to $2.27 from $1.48. The firm also sees FY2027 EPS at $2.13, signaling confidence in continued earnings growth.
• Other analysts are also turning more bullish on the stock, with recent target price increases from ATB Cormark, Stifel, and BMO Capital Markets. The current consensus rating is Buy with a consensus target price of C$50.50.
• Neo Performance Materials’ stock has been strong, recently trading near its 52-week high at C$41.96 versus a low of C$15.23. The company’s latest reported quarter showed EPS of C$0.47 on revenue of C$215.44 million, while it also paid a quarterly dividend of $0.10.

Neo Performance Materials Inc. (TSE:NEO - Free Report) - Stock analysts at Sidoti raised their Q2 2026 earnings per share (EPS) estimates for Neo Performance Materials in a research note issued on Tuesday, July 14th. Sidoti analyst D. Harriman now anticipates that the company will earn $0.65 per share for the quarter, up from their previous forecast of $0.41. The consensus estimate for Neo Performance Materials' current full-year earnings is $0.68 per share. Sidoti also issued estimates for Neo Performance Materials' Q3 2026 earnings at $0.55 EPS, Q4 2026 earnings at $0.57 EPS, FY2026 earnings at $2.27 EPS, Q1 2027 earnings at $0.53 EPS, Q2 2027 earnings at $0.51 EPS, Q3 2027 earnings at $0.55 EPS and FY2027 earnings at $2.13 EPS.

Several other research analysts have also recently issued reports on NEO. ATB Cormark Capital Markets increased their target price on shares of Neo Performance Materials from C$43.00 to C$53.50 and gave the stock an "outperform" rating in a report on Friday, July 10th. Stifel Nicolaus upped their price target on shares of Neo Performance Materials from C$26.00 to C$38.00 in a research report on Wednesday, May 13th. Finally, BMO Capital Markets increased their price objective on shares of Neo Performance Materials from C$43.00 to C$60.00 in a research note on Monday. Four equities research analysts have rated the stock with a Buy rating, Based on data from MarketBeat, the company currently has a consensus rating of "Buy" and a consensus target price of C$50.50.

Neo Performance Materials Stock Performance

NEO stock opened at C$41.96 on Thursday. The company has a debt-to-equity ratio of 41.75, a current ratio of 1.76 and a quick ratio of 1.92. The business has a 50-day moving average price of C$34.24 and a 200 day moving average price of C$26.27. The company has a market capitalization of C$1.93 billion, a P/E ratio of -174.83 and a beta of 1.44. Neo Performance Materials has a 1-year low of C$15.23 and a 1-year high of C$44.96.

Neo Performance Materials (TSE:NEO - Get Free Report) last issued its earnings results on Tuesday, May 12th. The company reported C$0.47 earnings per share for the quarter. Neo Performance Materials had a negative return on equity of 2.63% and a negative net margin of 2.03%.The business had revenue of C$215.44 million during the quarter.

Neo Performance Materials Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Monday, June 29th. Shareholders of record on Monday, June 29th were paid a $0.10 dividend. This represents a $0.40 annualized dividend and a yield of 1.0%. The ex-dividend date was Friday, June 19th. Neo Performance Materials's payout ratio is -120.72%.

Key Stories Impacting Neo Performance Materials

Here are the key news stories impacting Neo Performance Materials this week:

• Positive Sentiment: Sidoti raised its FY2026 EPS estimate for Neo Performance Materials to $2.27 from $1.48, signaling much stronger expected earnings this year. Neo Performance Materials quote
• Positive Sentiment: The firm also lifted FY2027 EPS to $2.13 from $1.52, suggesting confidence that earnings momentum can continue into next year. Neo Performance Materials quote
• Positive Sentiment: Near-term quarterly estimates were also increased, including Q2 2026 EPS to $0.65, Q3 2026 to $0.55, Q4 2026 to $0.57, Q1 2027 to $0.53, Q2 2027 to $0.51, Q3 2027 to $0.55, and Q4 2027 to $0.54, reinforcing a broad-based analyst upgrade. Neo Performance Materials quote
• Neutral Sentiment: Despite the upgrades, the broader consensus for the current full year remains at $0.68 EPS, so investor attention will likely stay on whether Neo can close the gap between analyst projections and actual results. Neo Performance Materials quote

About Neo Performance Materials

Neo manufactures the building blocks of many modern technologies that enhance efficiency and sustainability. Neo's advanced industrial materials - magnetic powders, rare earth magnets, magnetic assemblies, specialty chemicals, metals, and alloys - are critical to the performance of many everyday products and emerging technologies. Neo's products fast-forward technologies for the net-zero transition. The business of Neo is organized along three segments: Magnequench, Chemicals & Oxides and Rare Metals.

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