Neogen Shares Drop 4% Following Q1 Earnings

Neogen (NASDAQ:NEOG) unveiled its Q1 earnings, reporting an EPS of $0.11, which is $0.06 above the analyst estimate of $0.05. However, the quarterly revenue, totaling $229 million, came in slightly below the Street's estimate of $231.61 million, despite boasting a 73.0% increase from the same quarter in the previous year. As a result, shares fell more than 4% intra-day today.

Neogen's President and CEO, John Adent, noted significant strides in the core product lines of their Food Safety business, specifically within allergen, natural toxin, and microbiological testing domains. Meanwhile, the Animal Safety sector experienced continued destocking, driving channel inventory to notably low levels.

For fiscal 2024, Neogen expects revenue in the range of $955-$982 million, compared to the Street’s projection of $968.4 million.