Neogen Corp (NEOG) Q1 2025 Earnings Call Highlights: Navigating Challenges and Capitalizing on ...

GuruFocus.com10-11

Revenue: $217 million for the first quarter. Core Revenue Decline: 1% decline, excluding foreign currency, acquisitions, and discontinued product lines. Foreign Currency Impact: Headwind of 390 basis ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2474053486?lang=en_US&edition=fundamental","thumbnail":"https://s.yimg.com/uu/api/res/1.2/CMW0ApEIwQrrUArYn4GLKg--~B/aD00MDA7dz00MDA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/us.finance.gurufocus/0e189df5d4d153e595e5ffc256854fea","is_english":true,"pubTime":"2024-10-11 15:00","share_image_url":"https://static.laohu8.com/5f26f4a48f9cb3e29be4d71d3ba8c038","id":"2474053486","market":"us","top_or_hot":-1,"title":"Neogen Corp (NEOG) Q1 2025 Earnings Call Highlights: Navigating Challenges and Capitalizing on ...","media":"GuruFocus.com","content":"<div>\n<p>Revenue: $217 million for the first quarter.\nCore Revenue Decline: 1% decline, excluding foreign currency, acquisitions, and discontinued product lines.\nForeign Currency Impact: Headwind of 390 basis ...</p>\n\n<a href=\"https://finance.yahoo.com/news/neogen-corp-neog-q1-2025-070024813.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Neogen Corp (NEOG) Q1 2025 Earnings Call Highlights: Navigating Challenges and Capitalizing on ...</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nNeogen Corp (NEOG) Q1 2025 Earnings Call Highlights: Navigating Challenges and Capitalizing on ...\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-10-11 15:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/neogen-corp-neog-q1-2025-070024813.html><strong>GuruFocus.com</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Revenue: $217 million for the first quarter.\nCore Revenue Decline: 1% decline, excluding foreign currency, acquisitions, and discontinued product lines.\nForeign Currency Impact: Headwind of 390 basis ...</p>\n\n<a href=\"https://finance.yahoo.com/news/neogen-corp-neog-q1-2025-070024813.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"NEOG","symbol_name":"纽尔真检测","start_time":0,"source_url":"https://finance.yahoo.com/news/neogen-corp-neog-q1-2025-070024813.html","article_id":"2474053486","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/CMW0ApEIwQrrUArYn4GLKg--~B/aD00MDA7dz00MDA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/us.finance.gurufocus/0e189df5d4d153e595e5ffc256854fea"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2474053486","pubTimestamp":1728630024,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Core Revenue Decline: 1% decline, excluding foreign currency, acquisitions, and discontinued product lines.Foreign Currency Impact: Headwind of 390 basis points.Food Safety Segment Revenue: $159 million, a decrease of 4% compared to the prior year.Animal Safety Segment Revenue: $58 million, with a core revenue decline of 8%.Gross Margin: 48.4%, a decrease of 260 basis points from the previous year.Adjusted EBITDA: $44 million, with a margin of 20.1%, a decline of 280 basis points year-over-year.Gross Debt: $900 million, with 67% at a fixed rate.GuruFocus has detected 4 Warning Sign with NEOG.Neogen Corp  has solidified its position as the largest player in the food safety market following the 3M food safety transaction, enhancing its product portfolio and geographic reach.Neogen Corp  is seeing growth in its large animal genomics business, particularly in the beef and dairy segments.","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"NEOG":"纽尔真检测"},"translate_title":"Neogen Corp(NEOG)2025年第一季度收益看涨期权亮点：应对挑战并利用……","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"NEOG":1},"content_text":"Revenue: $217 million for the first quarter.\nCore Revenue Decline: 1% decline, excluding foreign currency, acquisitions, and discontinued product lines.\nForeign Currency Impact: Headwind of 390 basis points.\nFood Safety Segment Revenue: $159 million, a decrease of 4% compared to the prior year.\nAnimal Safety Segment Revenue: $58 million, with a core revenue decline of 8%.\nGross Margin: 48.4%, a decrease of 260 basis points from the previous year.\nAdjusted EBITDA: $44 million, with a margin of 20.1%, a decline of 280 basis points year-over-year.\nAdjusted Net Income: $14 million.\nAdjusted Earnings Per Share: $0.07.\nGross Debt: $900 million, with 67% at a fixed rate.\nTotal Cash Position: $120 million.\n\n\nWarning! GuruFocus has detected 4 Warning Sign with NEOG.\n\nRelease Date: October 10, 2024\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.\n Positive Points \n\nNeogen Corp (NASDAQ:NEOG) has solidified its position as the largest player in the food safety market following the 3M food safety transaction, enhancing its product portfolio and geographic reach.\nThe company is benefiting from secular tailwinds in the food safety market, including increasing regulatory requirements and consumer expectations for food transparency.\nNeogen Corp (NASDAQ:NEOG) is seeing growth in its large animal genomics business, particularly in the beef and dairy segments.\nThe company has resolved ERP-related challenges in its primary distribution center, improving operational efficiency.\nNeogen Corp (NASDAQ:NEOG) is making progress in regaining market share, with encouraging responses from initial efforts to win back previously impacted customers.\n\n Negative Points \n\nNeogen Corp (NASDAQ:NEOG) experienced a 1% decline in core revenue for the first quarter, with foreign currency posing a 390 basis point headwind.\nThe Animal Safety segment is facing challenges due to cyclical lows in end market conditions, particularly in the United States.\nThe company saw a decline in its genomics business on a year-over-year basis, with weakness in the companion animal segment.\nGross margin decreased by 260 basis points year-over-year, driven by lower volume and higher distribution costs.\nNeogen Corp (NASDAQ:NEOG) is facing challenges in customer recovery, particularly in the US, due to previous shipping delays and needs to demonstrate consistent supply to win back trust.\n\n Q & A Highlights \nQ: How is Neogen planning to allocate investments in sales, marketing, and R&D following the 3M acquisition? A: David Naemura, CFO, mentioned that Neogen is focusing on commercial investments, particularly in international regions, due to the critical mass achieved post-3M acquisition. The company is also prioritizing R&D investments in the Petrifilm platform, which is seen as a significant growth opportunity.\nQ: What is Neogen's strategy regarding debt management and potential acquisitions? A: David Naemura, CFO, stated that the primary capital allocation priority is funding the integration of 3M, followed by reducing leverage. As leverage decreases, it will free up capacity for mergers and acquisitions. The company aims to reach around 3 times net leverage by the end of the fiscal year.\nQ: Can you provide an update on the customer recovery efforts following the Petrifilm stock-out issue? A: John Adent, CEO, explained that Neogen has successfully regained customers in Japan and is seeing growth there. However, broader business recovery, particularly in the U.S., will take longer as the company works to rebuild trust and demonstrate consistent supply.\nQ: How is Neogen addressing customer losses and what feedback are they receiving from clients? A: John Adent, CEO, noted that customers have expressed frustration, but Neogen is sharing improvements and efficiency gains with them. The company is having constructive discussions and has been able to resign contracts with many customers after demonstrating improvements.\nQ: What are the expectations for Neogen's financial performance for the rest of the fiscal year? A: David Naemura, CFO, indicated that the company expects a more second-half weighted year, with improvements in revenue volumes and gross margins. The guidance remains unchanged, and the company is monitoring the timing and pace of share recovery and broader market conditions.\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.This article first appeared on \nGuruFocus.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2474053486"}