Neogen Increases Sales but Misses Revenue Estimate

Neogen (Nasdaq: 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.

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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.

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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.

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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 l ine, 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.

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