NASDAQ$NEOG

Neogen Corporation · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Neogen's revenue increased, driven by growth in the animal safety segment, while net income slightly decreased due to strategic consulting expenses.

Neogen Corporation reported a 7% increase in revenue for the second quarter of fiscal year 2021, reaching $115 million. The animal safety segment saw a significant 13% increase in sales. Net income decreased slightly to $15.885 million, or $0.30 per share, compared to $16.276 million, or $0.31 per share, in the prior year, impacted by strategic consulting expenses.

  • Total revenue increased by 7% compared to the previous year's second quarter, reaching $115 million.
  • Animal Safety segment experienced a strong 13% sales increase, driven by demand for cleaners, disinfectants, and rodenticides.
  • Food Safety segment revenue increased by 1%, with growth in Soleris microbial testing system and Listeria Right Now test system offset by COVID-19 related disruptions.
  • Operating income increased to $19.245 million, or 16.7% of sales, compared to $18.272 million, or 16.9% of sales, in the prior year.

Headline financials

Total Revenue

$115M

Previous: $108M+6.7%
EPS (adj)

$0.15

Previous: $0.16-6.3%
Free Cash Flow

$15.9M

Previous: $16.3M-2.4%
Net Income

$15.9M

Previous: $16.3M-2.4%
Operating Income

$19.2M

Previous: $18.3M+5.3%
Gross Profit

$53.2M

Previous: $51M+4.3%
Cash & Equivalents

$114M

Previous: $66.4M+71.5%
Total Assets

$846M

Previous: $751M+12.7%
Stock-Based Comp

$1.51M

Previous: $1.61M-6.3%

Revenue & EPS history

Neogen · Revenue · Quarterly

$115M

Q2 2021+6.7%vs Q2 2020
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Neogen · $115M total across 2 segments · Q2 2021

  • Food Safety
    $57.5M+1.2%
  • Animal Safety
    $57.5M+12.8%

Forward guidance

Neogen did not provide specific forward guidance in the provided text. The company is seeing signs of recovery with new product launches and strong sales increases in countries less affected by COVID-19.

Tailwinds

  • Successful new product launches.
  • Strong sales increases across a diverse product portfolio.
  • Recovery in countries less affected by COVID-19, including China and Australia.
  • Increased sales in disinfectants and genomic products in China.
  • Growth in companion animal genomic testing due to increased pet adoptions.

Headwinds

  • Global market disruptions from the resurgent COVID-19 pandemic.
  • Sales of food safety products adversely affected by COVID-19.
  • Currency headwinds reduced comparative revenues by approximately $1.2 million in the Food Safety segment.
  • Revenues declined 22% in Brazil due to a large, one-time sale of insecticides in the prior year quarter.
  • Interest income declined due to the drop in interest rates on marketable securities.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2021

Historical avgQ2 2021

-1.4%

Avg return

Earnings day

-2.4%

Avg return

5 days after

-1.8%

Avg return

30 days after

36%

23 / 64 earnings

Positive

+31.5%

Q2 2026

Best reaction

-28.7%

Q3 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026+3.9%-7.1%-12.5%
Q2 2026+31.5%+24.5%+46.3%
Q1 2026+16.4%+1.5%+10.0%
Q3 2025-28.7%-23.3%-15.2%
Q2 2025-3.3%-13.1%-20.7%
Q1 2025-2.8%-0.8%+9.3%
Q4 2024-1.6%-5.3%-1.0%
Q3 2024-13.1%-13.9%-13.6%
Q2 2024-5.5%-8.4%-18.0%
Q1 2024-11.7%-8.8%-11.0%
Q4 2023+2.3%+0.0%+0.8%
Q3 2023+0.2%-3.6%-6.9%
Q2 2023+5.1%+11.2%+30.3%
Q1 2023-1.0%-4.1%-12.2%
Q4 2022+8.0%+7.5%-2.8%
Q3 2022-7.4%-5.3%-15.3%
Q2 2022+1.4%+0.2%-19.2%
Q1 2022+3.0%+6.1%+2.9%
Q4 2021+0.2%-1.9%-3.6%
Q3 2021+3.0%+5.6%+14.9%
Q2 2021+1.2%+0.5%+3.8%
Q1 2021+0.2%+1.1%-4.3%
Q4 2020-4.0%-4.0%-2.9%
Q3 2020-5.3%-1.2%+8.1%
Q2 2020-5.4%-5.7%+1.2%
Q1 2020-10.6%-13.0%-13.1%
Q4 2019+9.0%+10.6%+13.2%
Q3 2019-8.3%-5.2%-4.4%
Q2 2019-8.1%-10.7%+2.4%
Q1 2019-17.8%-19.3%-30.4%
Q4 2018+1.5%+1.7%+3.9%
Q3 2018-4.2%+1.0%+7.6%
Q2 2018-0.8%-0.7%-1.8%
Q1 2018-4.4%-1.5%+6.4%
Q4 2017-2.2%-1.8%-4.5%
Q3 2017-5.9%-6.7%-9.8%
Q2 2017+3.8%+5.6%+0.5%
Q1 2017-4.7%-2.8%-10.1%
Q4 2016-1.6%-1.8%-0.4%
Q3 2016-14.6%
Q2 2016-2.0%
Q1 2016-12.1%
Q4 2015+25.2%
Q3 2015-3.4%
Q2 2015+1.2%
Q1 2015-1.7%
Q4 2014+11.3%
Q3 2014-0.1%
Q2 2014-5.6%
Q1 2014-0.3%
Q4 2013-4.9%
Q3 2013+0.5%
Q2 2013-0.7%
Q1 2013+7.5%
Q4 2010-2.9%
Q4 2012-2.9%
Q3 2012-0.3%
Q3 2011-0.3%
Q2 2011+2.5%
Q2 2012+2.5%
Q4 2011-7.3%
Q1 2011-7.3%
Q1 2012-7.3%
Q3 2010-0.5%

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