Neogen Earnings: Here’s Why the Stock is Down Now

Neogen Corp. (NASDAQ:NEOG) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 0.96%.

Neogen Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 16% to $0.29 in the quarter versus EPS of $0.25 in the year-earlier quarter.

Revenue: Rose 15.35% to $56 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Neogen Corp. reported adjusted EPS income of $0.29 per share. By that measure, the company missed the mean analyst estimate of $0.30. It beat the average revenue estimate of $54.94 million.

Quoting Management: “I am pleased to report that we achieved our goal of doubling our annual revenues to over $200 million in the five years since we first reached $100 million in our 2008 fiscal year,” said James Herbert, Neogen’s chief executive officer and chairman. “Not only did the year produce outstanding financial performance, but we also commercialized a number of internally developed products and made a couple of acquisitions that should help enhance future growth. While hitting $200 million is a nice achievement, we view it as a guidepost that we quickly move past, and not as a hitching post.”

Key Stats (on next page)…

Revenue increased 9.67% from $51.06 million in the previous quarter. EPS increased 7.41% from $0.27 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.33 to a profit $0.32. 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)