Food safety company Neogen Q1 revenue beats estimates, reaffirms annual guidance

Overview

• Neogen Q1 2026 revenue of $209.2 mln beats analyst expectations

• Adjusted Net Income for Q1 beats estimates, driven by operational adjustments

• Company completed divestiture and repaid $100 mln of debt

Outlook

• Company reaffirms FY2026 revenue guidance of $820 mln to $840 mln

• Neogen expects FY2026 adjusted EBITDA between $165 mln and $175 mln

• Capital expenditures for FY2026 expected to total approximately $50 mln

Result Drivers

• REVENUE DECLINE - Total revenue decreased 3.6% due to divestitures and discontinued product lines, with core revenue slightly up by 0.3%

• GROSS MARGIN IMPACT - Gross margin declined due to integration costs and lower revenue, but excluding these costs, margin was higher

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the medical equipment, supplies & distribution peer group is "buy."

• Wall Street's median 12-month price target for Neogen Corp is $7.25, about 19.7% above its October 8 closing price of $5.82

• The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 14 three months ago

Press Release: ID:nBw8SMqZla

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