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Neogen Q1 Earnings Miss Estimates, Revenues Beat, Stock Climbs
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Key Takeaways
NEOG's first-quarter EPS missed by 20% as revenues came in above consensus at $209.2 million.
Neogen's Q1 Food Safety fell 4.6%, Animal Safety down 0.8%, Genomics returned to mid-single-digit growth.
Neogen expects fiscal 2026 revenues of $820-$840M, adjusted EBITDA $165-$175M and CapEx of around $50M.
Neogen Corporation (NEOG - Free Report) reported first-quarter fiscal 2026 adjusted earnings per share (EPS) of 4 cents, which missed the Zacks Consensus Estimate by 20%. The bottom line fell 42.9% from the year-ago quarter’s figure.
Neogen’s Q1 Revenues
Revenues in the quarter decreased 3.6% on a year-over-year basis to $209.2 million. Core revenues increased 0.3%. Divestitures and discontinued product lines had a negative impact of 4.4%, while foreign currency had a positive impact of 0.5%. The metric topped the Zacks Consensus Estimate by 2.96%.
Following the announcement yesterday, NEOG stock rose 16.5% to close the session at $6.78.
Neogen’s Segments in Detail
The company's Food Safety segment registered revenues of $152.1 million in the fiscal first quarter, marking a 4.6% decrease year over year. This consisted of a 1.7% core revenue decline, a negative 3.7% impact of divestitures and discontinued product lines and a positive foreign currency impact of 0.8%.
The segment's strongest core revenue growth was in the Bacterial & General Sanitation product category, which benefited from higher sales in pathogen detection products. Our model projected Food Safety revenues to be $139.3 million for the fiscal first quarter.
Neogen Corporation Price, Consensus and EPS Surprise
Revenues from the Animal Safety segment totaled $57.1 million, down 0.8% year over year. This consisted of a 5.8% core revenue increase, an unfavorable 0.2% foreign currency impact and a negative 6.4% impact of divestitures and discontinued product lines.
The core revenue growth was led by Animal Care & Other, with higher sales of biologics and wound care products. Our model’s projection for the business was $63.8 million.
On a global basis, the company’s Genomics business returned to positive core revenue growth, which was in the mid-single-digit range in the first quarter.
Neogen’s Margin Details
In the first quarter of fiscal 2026, gross profit declined 9.5% year over year to $95 million. The gross margin contracted 296 basis points (bps) to 45.4% on a 2% increase in the cost of revenues.
Sales and marketing expenses amounted to $45 million, down 1.6% year over year, whereas administrative expenses increased 17.8% from the prior-year quarter’s level to $61 million. R&D expenses totaled $5.1 million, down 1.4% year over year. The quarter recorded an operating loss of $16.1 million compared to an operating profit of $2.3 million in the year-ago period.
Neogen’s Q1 Cash Position
Neogen’s cash and cash equivalents at the end of the fiscal first quarter totaled $138.9 million compared with $129 million at the end of the fourth quarter of fiscal 2025. The company’s non-current liabilities included a total outstanding debt of $800 million and a committed borrowing headroom of $201.5 million.
Neogen’s Fiscal 2026 Outlook
The company reaffirmed its projections for fiscal 2026, expecting revenues to be $820-$840 million. The Zacks Consensus Estimate is currently pegged at $818.3 million.
Adjusted EBITDA is expected to be in the range of $165 million-$175 million. Capital expenditures are projected to be nearly $50 million.
Our Take on NEOG
Neogen ended the first quarter of fiscal 2026 on a mixed note, with earnings missing and revenues surpassing estimates. However, both metrics declined on a year-over-year basis. The company’s performance has been affected by execution challenges, which it is addressing through a heightened focus on commercial excellence, renewed innovation and a leaner cost structure. The gross margin was also impacted by higher tariff rates in the fourth quarter, which flowed through inventory.
Other than indicator testing and the Culture Media product category, the company posted growth in most of its core Food Safety categories. Recent company-wide cost initiatives, including the reduction of headcount, are expected to fuel margin growth and give the ability to strategically reinvest in high-potential areas.
NEOG’s Zacks Rank and Key Picks
Neogen currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks from the broader medical space are Phibro Animal Health (PAHC - Free Report) , Insulet (PODD - Free Report) and Boston Scientific (BSX - Free Report) .
Phibro Animal Health, currently sporting a Zacks Rank #1 (Strong Buy), reported fourth-quarter fiscal 2025 adjusted EPS of 57 cents, topping the Zacks Consensus Estimate by 9.62%. Revenues of $378.7 million beat the Zacks Consensus Estimate by 4.86%. You can see the complete list of today’s Zacks #1 Rank stocks here.
PAHC has an estimated fiscal 2026 earnings growth rate of 21.1% compared with the industry’s 12.2% growth. The company surpassed earnings estimates in each of the trailing four quarters, with the average surprise being 27.9%.
Insulet, carrying a Zacks Rank #2 (Buy) at present, posted second-quarter 2025 adjusted EPS of $1.17, exceeding the Zacks Consensus Estimate by 25.81%. Revenues of $649.1 million surpassed the Zacks Consensus Estimate by 5.46%.
PODD has an estimated long-term earnings growth rate of 26% compared with the industry’s 13.4% growth. The company’s earnings outpaced estimates in each of the trailing four quarters, with the average surprise being 19.5%.
Boston Scientific, carrying a Zacks Rank #2, reported a second-quarter 2025 adjusted EPS of 75 cents, which surpassed the Zacks Consensus Estimate by 4.2%. Revenues of $5.6 billion topped the Zacks Consensus Estimate by 2.3%.
BSX has a long-term earnings growth rate of 14% compared to the industry’s 13.4% growth. The company’s earnings outperformed estimates in each of the trailing four quarters, with the average surprise being 8.1%.
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Neogen Q1 Earnings Miss Estimates, Revenues Beat, Stock Climbs
Key Takeaways
Neogen Corporation (NEOG - Free Report) reported first-quarter fiscal 2026 adjusted earnings per share (EPS) of 4 cents, which missed the Zacks Consensus Estimate by 20%. The bottom line fell 42.9% from the year-ago quarter’s figure.
Neogen’s Q1 Revenues
Revenues in the quarter decreased 3.6% on a year-over-year basis to $209.2 million. Core revenues increased 0.3%. Divestitures and discontinued product lines had a negative impact of 4.4%, while foreign currency had a positive impact of 0.5%. The metric topped the Zacks Consensus Estimate by 2.96%.
Following the announcement yesterday, NEOG stock rose 16.5% to close the session at $6.78.
Neogen’s Segments in Detail
The company's Food Safety segment registered revenues of $152.1 million in the fiscal first quarter, marking a 4.6% decrease year over year. This consisted of a 1.7% core revenue decline, a negative 3.7% impact of divestitures and discontinued product lines and a positive foreign currency impact of 0.8%.
The segment's strongest core revenue growth was in the Bacterial & General Sanitation product category, which benefited from higher sales in pathogen detection products. Our model projected Food Safety revenues to be $139.3 million for the fiscal first quarter.
Neogen Corporation Price, Consensus and EPS Surprise
Neogen Corporation price-consensus-eps-surprise-chart | Neogen Corporation Quote
Revenues from the Animal Safety segment totaled $57.1 million, down 0.8% year over year. This consisted of a 5.8% core revenue increase, an unfavorable 0.2% foreign currency impact and a negative 6.4% impact of divestitures and discontinued product lines.
The core revenue growth was led by Animal Care & Other, with higher sales of biologics and wound care products. Our model’s projection for the business was $63.8 million.
On a global basis, the company’s Genomics business returned to positive core revenue growth, which was in the mid-single-digit range in the first quarter.
Neogen’s Margin Details
In the first quarter of fiscal 2026, gross profit declined 9.5% year over year to $95 million. The gross margin contracted 296 basis points (bps) to 45.4% on a 2% increase in the cost of revenues.
Sales and marketing expenses amounted to $45 million, down 1.6% year over year, whereas administrative expenses increased 17.8% from the prior-year quarter’s level to $61 million. R&D expenses totaled $5.1 million, down 1.4% year over year. The quarter recorded an operating loss of $16.1 million compared to an operating profit of $2.3 million in the year-ago period.
Neogen’s Q1 Cash Position
Neogen’s cash and cash equivalents at the end of the fiscal first quarter totaled $138.9 million compared with $129 million at the end of the fourth quarter of fiscal 2025. The company’s non-current liabilities included a total outstanding debt of $800 million and a committed borrowing headroom of $201.5 million.
Neogen’s Fiscal 2026 Outlook
The company reaffirmed its projections for fiscal 2026, expecting revenues to be $820-$840 million. The Zacks Consensus Estimate is currently pegged at $818.3 million.
Adjusted EBITDA is expected to be in the range of $165 million-$175 million. Capital expenditures are projected to be nearly $50 million.
Our Take on NEOG
Neogen ended the first quarter of fiscal 2026 on a mixed note, with earnings missing and revenues surpassing estimates. However, both metrics declined on a year-over-year basis. The company’s performance has been affected by execution challenges, which it is addressing through a heightened focus on commercial excellence, renewed innovation and a leaner cost structure. The gross margin was also impacted by higher tariff rates in the fourth quarter, which flowed through inventory.
Other than indicator testing and the Culture Media product category, the company posted growth in most of its core Food Safety categories. Recent company-wide cost initiatives, including the reduction of headcount, are expected to fuel margin growth and give the ability to strategically reinvest in high-potential areas.
NEOG’s Zacks Rank and Key Picks
Neogen currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks from the broader medical space are Phibro Animal Health (PAHC - Free Report) , Insulet (PODD - Free Report) and Boston Scientific (BSX - Free Report) .
Phibro Animal Health, currently sporting a Zacks Rank #1 (Strong Buy), reported fourth-quarter fiscal 2025 adjusted EPS of 57 cents, topping the Zacks Consensus Estimate by 9.62%. Revenues of $378.7 million beat the Zacks Consensus Estimate by 4.86%. You can see the complete list of today’s Zacks #1 Rank stocks here.
PAHC has an estimated fiscal 2026 earnings growth rate of 21.1% compared with the industry’s 12.2% growth. The company surpassed earnings estimates in each of the trailing four quarters, with the average surprise being 27.9%.
Insulet, carrying a Zacks Rank #2 (Buy) at present, posted second-quarter 2025 adjusted EPS of $1.17, exceeding the Zacks Consensus Estimate by 25.81%. Revenues of $649.1 million surpassed the Zacks Consensus Estimate by 5.46%.
PODD has an estimated long-term earnings growth rate of 26% compared with the industry’s 13.4% growth. The company’s earnings outpaced estimates in each of the trailing four quarters, with the average surprise being 19.5%.
Boston Scientific, carrying a Zacks Rank #2, reported a second-quarter 2025 adjusted EPS of 75 cents, which surpassed the Zacks Consensus Estimate by 4.2%. Revenues of $5.6 billion topped the Zacks Consensus Estimate by 2.3%.
BSX has a long-term earnings growth rate of 14% compared to the industry’s 13.4% growth. The company’s earnings outperformed estimates in each of the trailing four quarters, with the average surprise being 8.1%.