Categories Earnings, Retail

Neogen stock drops on Q2 revenue miss; earnings decline

Neogen Corp. (NEOG) Thursday reported a decline in its second-quarter earnings, despite a 6% increase in revenues. While the overall performance was negatively impacted by lower demand for animal protein products, the bottom-line came in line with estimates.

Net income attributable to shareholders dropped to $16.01 million or $0.31 per share in the November quarter from $17.1 million or $0.33 per share last year, when the results had benefitted from a tax credit from employee stock option exercises. Earnings for the latest quarter matched analysts’ forecast.

Earnings dropped about 6% from last year when the results had benefitted from a tax credit from employee stock option exercises

Revenues of the company, which makes medical testing kits, advanced 6% annually to $107.1 million in the second quarter, with the Food Safety segment and Animal Safety segment growing 9% and 4% respectively. Driving the top-line growth, international revenues increased 10%. Europe registered a 9% growth aided by the strength of the genomics business, while revenues in Brazil climbed 26%.

Neogen Q1 profit climbs 28%, beats estimates

Attributing the dip in margins to unfavorable currency conversions, Neogen said it is all set to tap the opportunities in the overseas market in the coming quarters. “In the quarter, we had a number of strong performances in sales of recently commercialized products, especially in our foodborne pathogen and natural toxin product lines,” said CEO John Adent.

Neogen’s shares climbed to an all-time high in mid-September but pared the gains in the following weeks. The stock closed the last trading session lower and dropped about 4% in early trading Thursday after the earnings announcement.


Get access to timely and accurate verbatim transcripts that are published within hours of the event

Most Popular

Infographic: Key highlights from Campbell Soup Company’s (CPB) Q1 2023 earnings results

Campbell Soup Company (NYSE: CPB) reported first quarter 2023 earnings results today. Net sales increased 15% year-over-year to $2.57 billion. Organic sales growth was 15%. Net earnings attributable to Campbell Soup

Cancer drug maker Felicitex prepares for IPO. Here’s all you need to know

Fewer companies filed for initial public offering this year, compared to 2021 when the market witnessed a record number of IPOs. With only a few weeks left for the year

Chipotle Mexican Grill (CMG): A few points to keep in mind if you have an eye on this restaurant chain

Shares of Chipotle Mexican Grill Inc. (NYSE: CMG) were down 3% on Tuesday. The stock has dropped 13% year-to-date but there is still a positive sentiment in general about its

Add Comment
Viewing Highlight