Neogen (NASDAQ:NEOG) Announces Quarterly Earnings Results

Neogen (NASDAQ:NEOG) released its quarterly earnings results on Thursday. The company reported $0.09 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.05 by $0.04, Briefing.com reports. Neogen had a positive return on equity of 2.35% and a negative net margin of 69.93%.The business had revenue of $225.30 million during the quarter, compared to the consensus estimate of $212.35 million. During the same period in the previous year, the company posted ($2.82) EPS. The business’s quarterly revenue was down .1% compared to the same quarter last year.

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 Price Performance

Shares of NEOG stock traded up $0.45 on Friday, reaching $11.97. The company’s stock had a trading volume of 2,014,362 shares, compared to its average volume of 2,803,491. The stock’s fifty day simple moving average is $9.37 and its 200-day simple moving average is $9.60. Neogen has a 1 year low of $4.56 and a 1 year high of $12.05. The company has a market capitalization of $2.61 billion, a price-to-earnings ratio of -4.28, a price-to-earnings-growth ratio of 4.21 and a beta of 1.80. The company has a current ratio of 3.92, a quick ratio of 2.84 and a debt-to-equity ratio of 0.38.

Wall Street Analyst Weigh In

NEOG has been the topic of a number of research reports. Weiss Ratings downgraded shares of Neogen from a “sell (d-)” rating to a “sell (e+)” rating in a report on Friday, July 24th. Wall Street Zen raised shares of Neogen from a “hold” rating to a “buy” rating in a research report on Saturday, May 9th. Two investment analysts have rated the stock with a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus target price of $10.67.

Neogen News Roundup

Here are the key news stories impacting Neogen this week:

• Positive Sentiment: Fourth-quarter results exceeded expectations. Neogen reported adjusted earnings of $0.09 per share, versus the $0.05 analyst consensus, while revenue of $225.3 million topped estimates of $212.35 million. The comparison also benefited from an easier year-ago period, when the company reported a loss of $2.82 per share. Neogen Beats Q4 Earnings and Revenue Estimates
• Positive Sentiment: Fiscal 2027 outlook was stronger than expected. Management projects 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 exceeds the $204.9 million estimate. The company expects adjusted EBITDA of $180 million to $182 million for fiscal 2027. Neogen Fiscal 2027 Outlook
• Positive Sentiment: Growth investment may support longer-term performance. Neogen plans to increase research and development spending by approximately 50%, signaling continued investment in products and innovation, although the spending could weigh on near-term margins. Neogen 2026 Fourth-Quarter Results Presentation
• Neutral Sentiment: Revenue was essentially flat year over year, indicating that the earnings improvement has not yet translated into meaningful top-line growth. Management’s outlook is therefore important for sustaining investor enthusiasm.
• Negative Sentiment: Analysts cited in a recent report have an average price target of $10.67, below the stock’s current trading level, suggesting valuation concerns and potential downside if the company fails to deliver on its stronger outlook. Analyst Price Target for Neogen

Institutional Trading of Neogen

Several hedge funds and other institutional investors have recently bought and sold shares of NEOG. T. Rowe Price Investment Management Inc. boosted its position in Neogen by 249.2% in the 4th quarter. T. Rowe Price Investment Management Inc. now owns 8,181,768 shares of the company’s stock valued at $57,191,000 after buying an additional 5,838,570 shares during the period. Mackenzie Financial Corp grew its stake in Neogen by 1.0% in the 4th quarter. Mackenzie Financial Corp now owns 7,898,439 shares of the company’s stock worth $55,574,000 after acquiring an additional 79,010 shares in the last quarter. Cibc World Markets Corp purchased a new position in shares of Neogen during the fourth quarter worth approximately $47,983,000. Hudson Bay Capital Management LP raised its stake in shares of Neogen by 30.0% during the fourth quarter. Hudson Bay Capital Management LP now owns 6,500,000 shares of the company’s stock valued at $45,435,000 after acquiring an additional 1,500,000 shares in the last quarter. Finally, Geode Capital Management LLC raised its stake in shares of Neogen by 0.9% during the fourth quarter. Geode Capital Management LLC now owns 5,428,084 shares of the company’s stock valued at $37,949,000 after acquiring an additional 48,009 shares in the last quarter. Hedge funds and other institutional investors own 96.73% of the company’s stock.

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.