Neogen Beats Q3 Earnings, but Revenue Disappoints – Stock Still Under Pressure
(Investing.com) – Neogen Corporation (NASDAQ: NEOG) has just announced its third-quarter financial results with earnings that beat expectations, but revenue fell short of estimates, causing investors to continue to be cautious in the context of the stock being under strong pressure recently. Specifically, the third quarter EPS reached $0.10, far exceeding the analysts' forecast of a loss of -$0.01 – or $0.11. However, the quarter's revenue was only $221 million, lower than the expectation of $232.36 million, reflecting challenges in sales growth.
Full-year 2025 revenue outlook is also modest
In terms of financial guidance, Neogen expects fiscal 2025 revenue to reach about $895 million, lower than the market consensus of $910.2 million. This shows that management is still cautious in the context of a volatile business environment.
Shares have fallen sharply in the past 12 months
NEOG shares closed the most recent session at $7.04, with a decline of -43.04% in the past 3 months and -43.68% in the past 12 months. These figures reflect investors' concerns about the company's performance and medium-term prospects.
In the past 90 days, Neogen has recorded only 1 downward adjustment in EPS, without any upward adjustments, further reinforcing the caution from analysts.
Financial assessment: "Reasonable performance" from InvestingPro
According to data from InvestingPro, Neogen's financial health score is currently rated at "reasonable performance", indicating that the company has maintained a certain level of financial stability, but there is no clear breakthrough.
Should you add NEOG to your portfolio now?
With a long-term downtrend, investors may want to be cautious and keep a close eye on earnings recovery moves and industry trends. Additionally, AI tools like ProPicks AI are helping investors capture potential opportunities, as they have identified many stocks that have outperformed in 2024. Who knows, NEOG could be the next “dark horse”?