Neogen Earnings: Here’s Why Shares are Down Now
Neogen Corp. (NASDAQ:NEOG) delivered a profit and met Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 2.2%.
Neogen Corp. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 22.73% to $0.27 in the quarter versus EPS of $0.22 in the year-earlier quarter.
Revenue: Rose 13.78% to $51.1 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Neogen Corp. reported adjusted EPS income of $0.27 per share. By that measure, the company missed the mean analyst estimate of $0.27. It beat the average revenue estimate of $50.84 million.
Quoting Management: “Cost reductions in raw material and productivity improvements, in addition to the favorable product mix, have pushed up gross margins,” said Lon Bohannon, Neogen’s president and chief operating officer. “We are also pleased to report third quarter sales that were not only substantially above last year, but also higher than our traditionally strong second quarter. Growth in revenues from new products launched in the last 18 months along with solid growth in many of our existing market segments contributed to the strong third quarter sales performance.”
Key Stats (on next page)…
Revenue increased 0.71% from $50.74 million in the previous quarter. EPS decreased 3.57% from $0.28 in the previous quarter.
Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.31 and has not changed. For the current year, the average estimate is a profit of $1.13, which is the same with that ninety days ago.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)