Brief Overview on Company’s Performance: Neogen Corporation (NASDAQ: NEOG)

Shares of Neogen Corporation (NASDAQ: NEOG) closed with gain of +0.63% to $83.52. Recent traded volume was 146,728 shares versus to it an average volume of 205,143 shares. The company holds 51.76M shares outstanding and market cap of 4.323B. The stock’s day range was recorded between a low of $83.00 and a high $83.89. The one year high of the company is $84.77 and the one year low is $48.56.

Neogen Corporation (NEOG) reported recently that revenues for the fourth quarter of its 2018 fiscal year, which ended May 31, were $109,287,000, an raise of 11% contrast to $98,847,000 the previous year quarter. Revenues for the entire fiscal 2018 raised 11% to $402,252,000 from the previous year’s $361,594,000. Revenues and net income for the fourth quarter, and the 2018 fiscal year, established new all-time highs for the 36-year-old company.

Fourth quarter net income was $17,545,000, an raise of 41% contrast to the previous year’s $12,474,000. Adjusted for a 4-for-3 stock split effective Dec. 29, 2017, earnings per share in the current quarter were $0.33, contrast to $0.24 a year ago. Net income for the full 2018 fiscal year raised 44% to $63,145,000, or $1.21 per share, contrast to the previous year’s $43,793,000, or $0.86 per share. In both the current quarter and year, Neogen benefitted from U.S. corporate tax reform enacted in December 2017 and changes in the recognition of excess tax benefits from employee stock option exercises, which contributed to an effective tax rate of 12% for the quarter and 14% for the year.

“At the end of our 2013 fiscal year, when we crossed a milestone of $200M in sales, we set a new goal of achieving $400M in sales by the end of fiscal 2018. I am happy to report that we met this goal. We have now doubled our revenues every five years in the past 20 years,” stated James Herbert, Neogen’s executive chairman. “Going forward, Neogen continues to be uniquely positioned to continue this growth.”

The fourth quarter was the 105th of the past 110 quarters that Neogen stated revenue raises as contrast with the previous year — a record spanning over 27 years.

“Of special note in our 2018 fiscal year was a 17% raise in international sales, including solid revenue raises into our major markets in Europe, Brazil, and Mexico,” stated John Adent, Neogen’s president and chief executive officer. “These raises were comprised of sales of our food and animal safety lines, and reflect continuing consolidation of our global markets, including food safety diagnostics, animal care products, and animal genomics services.”

Gross margins for the company were 47.3% in fiscal 2018, contrast to 47.6% in fiscal 2017. Operating income was $70.2M, or 17.5% of sales, in the current fiscal year, contrast to $64.9M, or 18.0%, in the company’s 2017 fiscal year.

“Fiscal 2018 was another excellent year for us in generating cash and further strengthening our balance sheet,” stated Steve Quinlan, Neogen’s chief financial officer. “These results allow us to continue to make investments in our business, including the acquisitions of complementary businesses and technology, and infrastructure improvements to solidify our foundation to help drive future growth.”

Revenues for the company’s Food Safety section raised 14% during the current fiscal year contrast to the previous year, aided in part by the acquisitions of Quat-Chem and Rogama. The section’s current year results included a 13% raise in sales of test kits to detect drug residues in milk, in part driven by new test kits to detect drug residues of special concern in Eastern Europe. Neogen also recently released BetaStar® Advanced tests for beta-lactam and tetracycline antibiotics in milk. These new tests were developed for the U.S. market, and are designed to be performed with Neogen’s new Raptor® testing platform, which can be used with a number of other Neogen diagnostic tests.

The company has PEG ratio of 5.57 and price to cash ratio of 20.90. EPS growth for this year is 52.20% and EPS growth for next year is expected to reach at 12.27%. The short ratio in the company’s stock is documented at 11.41 and the short float is around of 4.63%. The average true range of the stock is observed at 2.01 and the relative strength index of the stock is recorded at 56.56.


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Pamela Wilson

Written by Pamela Wilson

Pamela Wilson:- Healthcare
I am Pamela Wilson and I focus on breaking news stories and ensuring we (“News Stories World”) offer timely reporting on some of the most recent stories released through market wires about “Healthcare”. I have formerly spent over 7 years as a trader in U.S. Stock Market and is now semi-stepped down. I work on a full time basis for specializing in quicker moving active shares with a short term view on investment opportunities and trends.

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