Neogen beats Q2 revenue estimates, raises guidance

Overview

• Food and animal safety firm's Q2 revenue fell 2.8% but beat analyst expectations

• Adjusted net income for Q2 beat analyst expectations

• Adjusted EBITDA for Q2 beat estimates

Outlook

• Neogen raises FY 2026 revenue guidance to $845 mln-$855 mln

• Company expects FY 2026 Adjusted EBITDA to be approximately $175 mln

• Neogen focuses on Petrifilm integration and sample collection optimization

Result Drivers

• CORE REVENUE GROWTH - Neogen's core revenue grew by 2.9% YoY, driven by strong sales in Indicator Testing and Culture Media within the Food Safety segment

• ANIMAL SAFETY DECLINE - Animal Safety segment revenue decreased by 11.8% due to divestitures and discontinued product lines, despite a slight core revenue increase

• STRATEGIC INITIATIVES - Neogen is focusing on leadership hires and the Petrifilm manufacturing transition to enhance future performance

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", 3 "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 1.8% below its January 7 closing price of $7.38

• The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 32 three months ago

Press Release: ID:nBw2gW4HDa

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