NASDAQ$NEOG

Neogen Corporation · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Neogen's Q3 2020 earnings were announced, revealing a slight increase in revenue but a decrease in net income compared to the previous year.

Neogen Corporation reported a 2% increase in revenue for the third quarter of fiscal year 2020, reaching $99,869,000, while net income decreased to $12,200,000, with earnings per share at $0.23. The company highlighted strong performance in genomics services and certain food safety product lines, along with strategic acquisitions to expand its global footprint.

  • Revenues increased by 2% to $99,869,000 compared to the previous year's third quarter.
  • Net income decreased to $12,200,000 from $13,073,000 in the prior year.
  • Earnings per share were $0.23, down from $0.25 a year ago.
  • The company made four strategic acquisitions to enhance its global footprint.

Headline financials

Total Revenue

$99.9M

Previous: $97.7M+2.2%
EPS (adj)

$0.12

Previous: $0.13-7.7%
Gross Margin

45.4%

Previous: 45.7%-0.7%
Free Cash Flow

$12.2M

Previous: $13.1M-6.7%
Net Income

$12.2M

Previous: $13.1M-6.7%
Operating Income

$13M

Previous: $14.6M-10.9%
Gross Profit

$45.3M

Previous: $44.6M+1.6%
Cash & Equivalents

$328M

Previous: $93.6M+250.4%
Total Assets

$774M

Previous: $673M+15.0%
Stock-Based Comp

$1.64M

Previous: $1.31M+25.6%

Revenue & EPS history

Neogen · Revenue · Quarterly

$99.9M

Q3 2020+2.2%vs Q3 2019
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Neogen · $99.9M total across 2 segments · Q3 2020

  • Food Safety
    $50.5M-1.2%
  • Animal Safety
    $49.4M+6.0%

Forward guidance

Neogen is proactively addressing issues associated with the current environment, including strengthening its global supply chain to secure availability of the raw materials and maintaining adequate staffing for its worldwide manufacturing operations to ensure it is able to continue to serve its global customer base.

Tailwinds

  • Strong balance sheet with no debt.
  • Substantial cash reserves.
  • Solid cash generation.
  • Strengthening global supply chain.
  • Maintaining adequate staffing for worldwide manufacturing operations.

Headwinds

  • Adverse economic conditions threaten the global economy in 2020 as a result of COVID-19.
  • Revenues for the company’s Food Safety segment decreased 1% during the third quarter compared to the prior year quarter.
  • Significant decrease in sales of drug residue test kits due to ending exclusive relationship with distributor in Europe.
  • Loss of forensic kit sales in Brazil due to a customer switching to an alternative technology platform.
  • Revenues from the company’s Brazilian operations decreased 16%.

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 Q3 2020

Historical avgQ3 2020

-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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