Neogen (NASDAQ:NEOG) Shares Gap Up Following Strong Earnings

Neogen Corporation (NASDAQ:NEOG) shares gapped up before the market opened on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $9.40, but opened at $10.50. Neogen shares last traded at $10.7140, with a volume of 323,123 shares.

The company reported $0.09 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.06 by $0.03. Neogen had a positive return on equity of 2.78% and a negative net margin of 0.91%.The business had revenue of $225.30 million for the quarter, compared to the consensus estimate of $212.35 million. During the same quarter last year, the business posted ($2.82) EPS. The business’s revenue was down .1% on a year-over-year basis.

Trending Headlines about Neogen

Here are the key news stories impacting Neogen this week:

• Positive Sentiment: Neogen reported fiscal Q4 adjusted earnings of $0.09 per share, above the $0.05 analyst consensus and substantially better than the $2.82-per-share loss reported in the year-ago quarter. Revenue of $225.3 million also exceeded estimates of $212.35 million. Neogen Beats Q4 Earnings and Revenue Estimates
• Positive Sentiment: Management forecast fiscal 2027 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 topped the $204.9 million consensus. Neogen Fiscal 2027 Guidance
• Positive Sentiment: The company expects fiscal 2027 adjusted EBITDA of approximately $180 million to $182 million, signaling anticipated improvement in profitability and supporting the favorable investor reaction. Neogen Fiscal 2026 Results
• Neutral Sentiment: Despite the earnings beat, quarterly revenue was essentially flat year over year, down 0.1%, indicating that the stronger outlook depends on future growth rather than current top-line acceleration.
• Neutral Sentiment: Analysts’ average price target is approximately $10.67, below the stock’s recent trading level, suggesting valuation and expectations may limit additional upside. Analysts Set Neogen Price Target
• Negative Sentiment: Neogen plans to increase research and development spending by roughly 50% in fiscal 2027. Although intended to support longer-term growth, the investment could pressure near-term margins and earnings.

Wall Street Analyst Weigh In

A number of equities research analysts have issued reports on the company. Weiss Ratings cut Neogen from a “sell (d-)” rating to a “sell (e+)” rating in a research note on Friday, July 24th. Wall Street Zen upgraded shares of Neogen from a “hold” rating to a “buy” rating in a research report on Saturday, May 9th. Two equities research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the company currently has an average rating of “Hold” and a consensus price target of $10.67.

Institutional Trading of Neogen

Institutional investors have recently made changes to their positions in the stock. Granahan Investment Management LLC acquired a new stake in shares of Neogen in the first quarter valued at $2,323,000. Bessemer Group Inc. grew its holdings in shares of Neogen by 160,972.5% in the 1st quarter. Bessemer Group Inc. now owns 1,565,625 shares of the company’s stock worth $14,545,000 after acquiring an additional 1,564,653 shares during the last quarter. Roubaix Capital LLC acquired a new position in shares of Neogen in the 1st quarter worth $4,630,000. Round Rock Advisors LLC increased its stake in Neogen by 520.8% in the 4th quarter. Round Rock Advisors LLC now owns 156,967 shares of the company’s stock worth $1,097,000 after purchasing an additional 131,684 shares in the last quarter. Finally, Mizuho Markets Americas LLC increased its position in shares of Neogen by 75.0% in the fourth quarter. Mizuho Markets Americas LLC now owns 3,500,000 shares of the company’s stock worth $24,465,000 after acquiring an additional 1,500,000 shares in the last quarter. 96.73% of the stock is owned by institutional investors and hedge funds.

Neogen Trading Up 4.4%

The company’s 50-day moving average is $9.44 and its 200 day moving average is $9.62. The company has a current ratio of 3.82, a quick ratio of 2.84 and a debt-to-equity ratio of 0.38. The firm has a market cap of $2.62 billion, a PE ratio of -401.33, a P/E/G ratio of 5.16 and a beta of 1.80.

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.