Neogen Increases Sales but Misses Revenue Estimate

Before you go, we thought you'd like these...
Before you go close icon

Neogen (NAS: NEOG) reported earnings on Dec. 22. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Nov. 30 (Q2), Neogen missed on revenues and whiffed on earnings per share.

Compared to the prior-year quarter, revenue increased slightly, and earnings per share dropped significantly.

Margins dropped across the board.

Revenue details
Neogen booked revenue of $45 million. The five analysts polled by S&P Capital IQ foresaw a top line of $47 million. Sales were 2.2% higher than the prior-year quarter's $44 million.

anImage

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
EPS came in at $0.22. The four earnings estimates compiled by S&P Capital IQ forecast $0.26 per share. GAAP EPS of $0.22 for Q2 were 15% lower than the prior-year quarter's $0.26 per share.

anImage

Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 50.5%, 70 basis points worse than the prior-year quarter. Operating margin was 18.1%, 380 basis points worse than the prior-year quarter. Net margin was 11.7%, 220 basis points worse than the prior-year quarter.

anImage

Source: S&P Capital IQ. Quarterly periods.

Looking ahead
What does the future hold?

Next quarter's average estimate for revenue is $45 million. On the bottom line, the average EPS estimate is $0.22.

Next year's average estimate for revenue is $183 million. The average EPS estimate is $0.93.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 258 members out of 266 rating the stock outperform and eight members rating it underperform. Among 76 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), all 76 give Neogen a green thumbs-up, and none give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Neogen is outperform, with an average price target of $39.60.

At the time this article was published

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners