Neogen Corp. (NEOG) reported a 28% jump in earnings for the first quarter helped by tax benefits from employee stock option exercises. The bottom line came in above analysts’ expectations, while the top line missed consensus.
Earnings for the quarter climbed 28% to $15.24 million or $0.29 per share. Revenue rose 6% to $99.63 million. Sales to the company’s international customers increased 17% in the quarter helped by growth across the globe, including operations in Europe, Brazil, Mexico, China, and India, despite some currency headwinds.
Revenues for Food Safety segment increased 13%. Sales of Neogen’s rapid tests for foodborne pathogens, such as Listeria and Salmonella, increased 43% helped by sales of its innovative Listeria Right Now test system, which detects the pathogen in less than an hour.
Meanwhile, sales of Neogen Culture Media products grew 16% driven by the benefit from the synergistic global combination of its former Acumedia and Lab M culture media brands. Animal Safety revenues declined 1% due to the weakness in the distribution channel, resulting from difficult business conditions in the animal protein sector.
During early September, Neogen purchased the assets of Livestock Genetic Services that specializes in genetic evaluations and data management for cattle breeding organizations. The addition of Livestock Genetic strengthens Neogen’s animal genomics laboratories business. The terms of the deal were undisclosed.
Shares of the food and animal safety products developer ended Monday’s regular session down 0.81% at $88.68 on the Nasdaq. The stock had risen by 62% for the past year and more than 43% for the year so far.
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