Introduction
Neogen Corporation (NASDAQ:NEOG), a leading player in food and animal safety solutions, disappointed investors on Wednesday with weaker-than-expected Q3 results and a reduced full-year revenue forecast. The market responded swiftly, sending shares down -16.9% in premarket trading.
1. Earnings Snapshot
Despite beating profit expectations, Neogen fell short on revenue:
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Q3 Revenue: $221 million (vs. $232.36 million expected)
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YoY Decline: -3.4%
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Adjusted EPS: $0.10 (vs. -$0.01 forecast)
While the earnings per share beat was a positive surprise, the top-line miss reflected ongoing struggles in the company’s operational segments.
2. Segment Performance
Both core business units posted year-over-year revenue declines:
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Food Safety: $152.7 million, down -3.2%
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Animal Safety: $68.2 million, down -4%
CEO John Adent attributed the weaker quarter to “lower sample collection revenue,” though he noted production throughput had returned to normal levels by quarter-end.
3. Guidance Cut Amid Macroeconomic Uncertainty
Neogen also trimmed its fiscal 2025 revenue guidance:
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New Forecast: ~$895 million
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Previous Forecast: Above $910 million
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Analyst Estimate: $910.2 million
The company cited macro uncertainty and underperformance in Q3 as the main drivers for the revision.
“We are taking decisive actions to influence what’s within our control,” said Adent. “Despite short-term headwinds, we remain confident in our long-term growth.”
4. Investor Takeaway
Neogen’s earnings highlight a challenging environment for niche health and safety firms, especially those sensitive to shifts in supply chain and agricultural cycles. Investors will be watching closely to see:
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If the company can maintain its recent operational improvements
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How the macro environment shapes demand in key markets
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Whether management delivers on its long-term growth outlook
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Conclusion
Neogen may have navigated past production challenges, but its revenue miss and guidance cut signal deeper headwinds ahead. Investors now face the big question: can operational stability translate into a sustainable rebound?
