NASDAQ$NEOG

Neogen Corporation · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Neogen's Q2 2024 results were announced, revealing a slight decrease in revenue but progress in integrating the former 3M Food Safety business.

Neogen Corporation reported Q2 2024 revenue of $229.6 million, a slight decrease of 0.2% year-over-year. The company experienced a net loss of $3.5 million, or $(0.02) per diluted share, but an adjusted net income of $24.9 million, or $0.11 per diluted share. The results reflect ongoing integration efforts and stabilization in end markets, with an updated full-year outlook provided.

  • Revenue reached $229.6 million, slightly down by 0.2% compared to the previous year.
  • Net loss amounted to $3.5 million, or $(0.02) per diluted share.
  • Adjusted net income was $24.9 million, or $0.11 per diluted share.
  • The company is updating its full-year outlook, anticipating slower improvements in end markets.

Headline financials

Total Revenue

$230M

Previous: $230M-0.2%
EPS (adj)

$0.11

Previous: $0.15-26.7%
Capital Expenditures

-$24.4M

No prior period
Free Cash Flow

-$3.49M

Previous: -$41.8M+91.7%
Net Income

-$3.49M

Previous: -$41.8M+91.7%
Operating Income

$14.5M

Previous: -$7.66M+288.9%
Gross Profit

$117M

Previous: $113M+3.8%
Cash & Equivalents

$206M

Previous: $100M+105.8%
Total Assets

$4.6B

Previous: $4.56B+0.9%
R&D Expense

$5.76M

No prior period
Stock-Based Comp

$3.51M

Previous: $2.63M+33.4%

Revenue & EPS history

Neogen · Revenue · Quarterly

$230M

Q2 2024-0.2%vs Q2 2023
Beat estimate in 9 of 14 quarters(64%)
ActualEstimate

Revenue by segment

Neogen · $229M total across 2 segments · Q1 2024

  • Food Safety
    $166M+157.3%
  • Animal Safety
    $62.7M-7.4%

Forward guidance

Neogen is updating its full-year outlook, expecting revenue to be in the range of $935 million to $955 million, with Adjusted EBITDA in the range of $230 million to $240 million. Capital expenditures are still expected to be approximately $130 million, including approximately $100 million related specifically to the integration of the former 3M Food Safety Division. Improvements in its primary end markets are likely to happen at a slower pace than originally anticipated.

Tailwinds

  • Integration of the former 3M Food Safety business is progressing with notable milestones achieved.
  • Order flows in the Food Safety segment have remained stable, indicating core growth.
  • Solid core growth was observed in Petrifilm, with accelerated growth in Asia.
  • Destocking by distributors in the Animal Safety segment is moderating.
  • Inflation appears to be easing, potentially leading to increased food production volumes.

Headwinds

  • Improvements in end markets are expected to happen at a slower pace than originally anticipated.
  • The strategic shift in focus of the Genomics business is creating incremental headwinds.
  • Destocking by distributors in the Animal Safety segment continued.
  • The domestic Genomics business experienced a decline due to customer attrition.
  • The Animal Care & Other product category experienced a core revenue decline due largely to lower sales of small-animal supplements and wound-care products.

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 2024

Historical avgQ2 2024

-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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