Neogen Corp. (NEOG)

Neogen Corp. Stock (NEOG) plummeted by 9.32% due to the company's disappointing third-quarter 2024 earnings report and a downward revision of its 2024 guidance.

• Earnings and Revenue Performance: In the third quarter, Neogen reported sales of $228.8 million, a 4.8% increase year over year, but below the consensus estimate of $230.01 million. Core revenue growth was 6.2%. The company's adjusted EPS was $0.12, flat year over year but below the consensus of $0.14.
• Margin and Adjusted EBITDA: Neogen's gross margin for the quarter was 51.1%, up from 49.5% in the same quarter a year ago. This improvement was driven by increased sales of higher-margin products in the Food Safety segment. However, the adjusted EBITDA margin was 23.0%, down from 23.5% a year ago, primarily due to higher operating expenses related to the integration of the former 3M Food Safety Division.
• Guidance Revision: Neogen revised its fiscal year 2024 sales guidance to $910 million—$920 million, down from the prior guidance of $935 million—$955 million. The company also lowered its adjusted EBITDA guidance to $210 million-$215 million, compared to the previous guidance of $230 million-$240 million. The revised guidance reflects a slower-than-anticipated recovery in order fulfillment rates, impacting the company's ability to meet end-market demand.

Neogen Corp. (NEOG) stock dropped by 8.37% due to the company's second-quarter 2024 financial results, which fell short of analyst expectations. Here's a breakdown of the key details:

• Earnings and Revenue Miss: Neogen reported earnings per share (EPS) of 11 cents for the second quarter of 2024, which was below the analyst consensus estimate of 14 cents. Additionally, the company reported revenue of $229.63 million, falling 1.39% short of the analyst estimate for revenue, which was expected to reach $232.87 million.
• Market Reaction: Investors reacted to the lower-than-expected earnings and revenue figures by selling Neogen Corp. (NEOG) stock, leading to the notable decline in its stock price.
• Analyst Expectations: The earnings and revenue misses suggest that Neogen's financial performance for the second quarter of 2024 did not meet the market's expectations. Analyst estimates serve as benchmarks for evaluating a company's performance, and falling short of these estimates can result in a negative market response.
• Investor Sentiment: The stock price decline may also reflect investor sentiment and concerns about Neogen's ability to meet its financial targets and deliver expected growth in its business. In summary, Neogen Corp.'s stock price dropped following its Q2 2024 financial results, which missed analyst expectations for both earnings and revenue. Investors and market participants will closely watch for any further developments and company actions to assess Neogen's prospects in the coming quarters.

Shares of Neogen Corp. (NEOG) dropped by 6.79% from $16.16 to $14.97 in the trading on Wednesday, October 11, 2023. The reason why NEOG stock down is due to its Q1 earnings missing estimates:

• EPS: In the first quarter of fiscal 2024, Neogen reported earnings per share (EPS) of 11 cents, marking a significant 31.3% year-over-year decrease, and missing the Zacks Consensus Estimate by 21.4%.
• Animal Safety segment experienced continued destocking, resulting in multi-year lows in channel inventory levels. Animal Safety revenues amounted to $62.7 million but saw a 7.4% year-over-year decline, attributed to various factors including destocking and supply constraints.
• Despite the earnings miss, the company reported a substantial 73% year-over-year increase in revenues for the fiscal first quarter, reaching $228.9 million. Core revenues decreased by 1.3%, while acquisitions and discontinued product lines contributed 73.5% to the revenue growth.
• Neogen's worldwide genomics business experienced fluctuations, with the gross margin expanding to 50.9%, though rising expenses, including operating costs totaling $97.6 million, raised concerns. The company maintained its full-year revenue outlook of $955 million to $985 million and expected capital expenditures of approximately $130 million for the fiscal year 2024.

Neogen Corporation Stock (NEOG) dropped by 5.31% from $16.96 to $16.06 in the trading on Tuesday October 10, 2023. The reason why NEOG stock down today is due to the Q1 FY24 results.

• Sales of $229 million, missing the consensus of $231.1 million.
• Core revenue declined 1.3%. Acquisitions and discontinued product lines contributed 73.5% to revenue growth.
• Adjusted EPS of 11 cents, which missed the consensus of 12 cents.
• Revenues for the Food Safety segment were $166.3 million, up 157.2% Y/Y.

Neogen Corporation (NEOG) experienced a 13.18% decline, with its stock price falling to $19.37. This drop followed the company's announcement of modestly negative core growth for the first quarter, which was slightly below expectations.

https://www.fool.com/investing/2023/09/07/why-shares-of-neogen-are-slumping-this-week/