Neogen Q4 revenue misses analyst expectations

Overview

• Neogen Q4 revenue falls 4.8% yr/yr to $225.5 mln, impacted by market conditions

• Net loss of $612.2 mln due to non-cash goodwill impairment from 3M acquisition

• Adjusted EPS of $0.05 misses analyst expectations, per LSEG data

Outlook

• Neogen sees fiscal 2026 revenue between $820 mln and $840 mln

• Company expects fiscal 2026 adjusted EBITDA of $165 mln to $175 mln

• Neogen anticipates significant decline in fiscal 2026 capital expenditures to $50 mln

• Company's fiscal 2026 outlook excludes divested Cleaners & Disinfectants business

Result Drivers

• SOFTER MARKET CONDITIONS - Neogen attributes revenue decline to softer end-market conditions and trade uncertainty, per CEO John Adent

• INTEGRATION COSTS - Transaction and integration costs related to 3M Food Safety Division acquisition impacted gross margin

• PRODUCT LINE DECLINES - Acquisitions and discontinued product lines represented a 0.4% negative impact, while foreign currency was a headwind of 2.6%

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "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 $7.50, about 27.7% above its July 28 closing price of $5.42

• The stock recently traded at 40 times the next 12-month earnings vs. a P/E of 19 three months ago

Press Release: ID:nBwb3ghtZa