Neogen (NEOG) Shares Surge 31.16% Following Q2 Revenue of $224.7 Million
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 17h ago
0mins
Source: Fool
- Stock Surge: Neogen's shares soared by 31.16% on Thursday, reflecting strong investor reaction to its quarterly earnings report, despite a nearly 3% year-over-year revenue decline to $224.7 million, indicating market expectations for future growth.
- Earnings Beat: The company's net income fell from $24.4 million to $22.6 million ($0.10 per share), yet this performance exceeded analyst expectations of $0.03 per share, demonstrating relative stability in profitability amid challenges.
- Guidance Upgrade: Neogen raised its fiscal 2026 revenue guidance to $845 million to $855 million, up from the previous $820 million to $840 million, showcasing management's confidence in future performance despite ongoing revenue pressures.
- Market Reaction Analysis: While Neogen's earnings report was impressive, analysts remain concerned about the revenue decline, especially as the company failed to achieve revenue growth, suggesting that investor enthusiasm may be overly optimistic.
Analyst Views on NEOG
Wall Street analysts forecast NEOG stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for NEOG is 8.17 USD with a low forecast of 6.50 USD and a high forecast of 10.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
4 Analyst Rating
1 Buy
3 Hold
0 Sell
Hold
Current: 9.710
Low
6.50
Averages
8.17
High
10.00
Current: 9.710
Low
6.50
Averages
8.17
High
10.00
About NEOG
Neogen Corporation and subsidiaries are engaged in developing, manufacturing and marketing a diverse line of products and services dedicated to food and animal safety. The Company has developed comprehensive solutions spanning the Food Safety, Livestock, and Pet Health & Wellness markets. Its segments include Food Safety and Animal Safety. The Food Safety segment is primarily engaged in the development, production and marketing of diagnostic test kits and related products used by food producers and processors to detect harmful natural toxins, foodborne bacteria, allergens and levels of general sanitation. The Animal Safety segment is primarily engaged in the development, production and marketing of products dedicated to animal safety, including a complete line of consumable products marketed to veterinarians and animal health product distributors. This segment also provides genomic identification and related interpretive bioinformatic services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
