Neogen Corp. beats the Street in fourth quarter
Neogen Corporation, a food-testing company with interests in the animal health market, beat Wall Street’s expectations reported earnings for the fourth quarter of fiscal 2018 earlier this week. The company said that it broke previous records for revenue and net income (both for the quarter and the full year), establishing a new high point in its 36-year history.
Neogen’s share price has risen by 36% so far this year
Source: Yahoo Finance
For the fourth quarter, Neogen reported revenues of $109.29 million – that beat analysts’ estimates for quarterly revenue of $108.11 million. It was also a significant beat against the previous year’s figure: in the fourth quarter of 2017, Neogen collected revenues of $98.85 million, meaning this year’s results were a full 11% better.
Meanwhile, earnings per share came in at 33¢ - a clear beat against the Street, which had asked to see 30¢, and also a significant rise from the same period last year, when Neogen returned 24¢ per share. Net income for the quarter came in at $17.55 million, a 41% increase from the comparable quarter in 2017.
Discussing how business has boomed over the past few years, Neogen’s executive chairman, James Herbert, said: "At the end of our 2013 fiscal year, when we crossed a milestone of $200 million in sales, we set a new goal of achieving $400 million in sales by the end of fiscal 2018. I am pleased to report that we met this goal. We have now doubled our revenues every five years in the past 20 years. Going forward, Neogen continues to be uniquely positioned to continue this growth."
John Adent, Neogen’s president and CEO, added: "Of special note in our 2018 fiscal year was a 17% increase in international sales, including solid revenue increases into our major markets in Europe, Brazil, and Mexico. These increases 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."
Dominion holds Neogen Corporation in its Global Trends Managed Fund.
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