Neogen says its earnings and revenue were lower than expected in Q2

December 22, 2020
  • Neogen says its earnings and revenue were lower than expected in Q2.
  • Food safety revenue came in 1% higher on a year over year basis.
  • Neogen Corporation is close to 30% up year to date in the stock market.

Neogen Corp. (NASDAQ: NEOG) said on Tuesday that its earnings and revenue were lower than analysts’ estimates in the fiscal second quarter. The company attributed its dovish performance in Q2 somewhat to the ongoing COVID-19 crisis that has so far infected more than 18 million people in the United States and caused over 327 thousand deaths.

Neogen Corp slid over 7% in premarket trading on Tuesday but regained the entire intraday loss on market open. On a year-to-date basis, the stock is now just under 30% up after a 50% recovery since mid-March. Learn more about why do prices rise and fall in the stock market.

Neogen’s Q2 financial results versus Zacks consensus estimates

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Adjusted for one-time items, Neogen Corp said that it earned 22 pence per share in the second quarter. In comparison, it had recorded a marginally higher 23 pence per share of earnings in the same quarter last year. The Zacks Consensus Estimate for its per-share earnings in the recent quarter, on the other hand, stood at 24 pence per share.

The international food safety company said that it generated £86.13 million of revenue in Q2. In the comparable quarter of last year, its revenue was capped at a lower £80.74 million. Neogen missed the Zacks Consensus Estimate for second-quarter revenue by 0.39%.

At £43.07 million, food safety revenue came in 1% higher on a year over year basis in the second quarter. The Lansing-based company acknowledged that its food safety segment took the hardest hit from the ongoing pandemic in recent months.

In separate news from the Unites States, Cintas Corp said on Tuesday that its revenue jumped 4.7% in the fiscal second quarter.

Other prominent figures in Neogen’s earnings report

Other prominent figures in Neogen’s earnings report on Tuesday include £43.07 million of revenue from its animal safety segment that translates to a 13% annualised growth. Rodenticides sales jumped 24% in Q2 while revenue from genomics testing and bioinformatics segment came in 11% higher than last year.

In an announcement earlier in December, Neogen said it had launched new preventative care DNA test, Igenity Canine Wellness.

The U.S. company performed fairly upbeat in the stock market last year with an annual gain of more than 15%. At the time of writing, Neogen Corporation is valued at £3.24 billion and has a price to earnings ratio of 71.28.

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