Neogen Stock: Expect Volatility To Continue Amid Weak Growth

seekingalpha10-12

Neogen reported its Q1 earnings, which missed expectations.Weak demand trends across food and animal safety end markets have pressured the sales outlook.We expect shares to remain volatile until there...

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/2474602397?lang=en_US&edition=fundamental","thumbnail":"https://static.seekingalpha.com/cdn/s3/uploads/getty_images/152831243/image_152831243.jpg","is_english":true,"pubTime":"2024-10-12 05:31","share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","id":"2474602397","market":"hk","top_or_hot":-1,"title":"Neogen Stock: Expect Volatility To Continue Amid Weak Growth","media":"seekingalpha","content":"<div>\n<p>Neogen reported its Q1 earnings, which missed expectations.Weak demand trends across food and animal safety end markets have pressured the sales outlook.We expect shares to remain volatile until there...</p>\n\n<a href=\"https://seekingalpha.com/article/4726297-neogen-stock-expect-volatility-to-continue-amid-weak-growth\">Source Link</a>\n\n</div>\n","source":"seekingalpha","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 Stock: Expect Volatility To Continue Amid Weak Growth</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 Stock: Expect Volatility To Continue Amid Weak Growth\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-10-12 05:31 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4726297-neogen-stock-expect-volatility-to-continue-amid-weak-growth><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Neogen reported its Q1 earnings, which missed expectations.Weak demand trends across food and animal safety end markets have pressured the sales outlook.We expect shares to remain volatile until there...</p>\n\n<a href=\"https://seekingalpha.com/article/4726297-neogen-stock-expect-volatility-to-continue-amid-weak-growth\">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://seekingalpha.com/article/4726297-neogen-stock-expect-volatility-to-continue-amid-weak-growth","article_id":"2474602397","we_media_id":null,"thumbnails":["https://static.seekingalpha.com/cdn/s3/uploads/getty_images/152831243/image_152831243.jpg"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2474602397","pubTimestamp":1728682319,"sourceInfo":{"source_id":"seekingalpha","name":"Seeking Alpha"},"weMediaInfo":null,"summary":"The attraction of Neogen as a potential investment opportunity starts with the company's industry position in food production testing diagnostics and the livestock health niche. There is an understanding that he","collect":0,"end_time":0,"defaultTopTitle":"seekingalpha.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"NEOG":"纽尔真检测","BK4198":"医疗保健用品","LU2211817866.USD":"Allianz Food Security AT Acc USD"},"translate_title":"Neogen股票：预计在增长疲软的情况下波动将持续","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"NEOG":0.9},"content_text":"Neogen reported its Q1 earnings, which missed expectations.Weak demand trends across food and animal safety end markets have pressured the sales outlook.We expect shares to remain volatile until there is evidence of a growth rebound.   Monty Rakusen/DigitalVision via Getty ImagesShares of Neogen Corp. (NASDAQ:NEOG) are down nearly 30% this year amid a string of disappointing results. The trend continued as the food science and animal safety diagnostic specialist reported its latest quarterly earnings, which came in below expectations. Challenges attempting to integrate the company's 2022 acquisition of 3M Corp.'s (MMM) Food Safety division along with broad weakness in end markets have pressured sales. We highlighted these themes in our last article covering Neogen nearly one year ago, with today's update noting there are few signs of a major turnaround. We expect shares to remain volatile, with risks tilted to the downside. Data by YChartsNEOG 2025 Q1 Earnings Recap Neogen Q2 EPS of $0.07 missed the consensus estimate by $0.02 leading to a sharp selloff in the stock on the report. Revenue of $217 million matched previous guidance, but also marked a 5.3% year-over-year decline. Comparable core sales, excluding the impact of FX variations and recent divestitures, also fell by 1.4%. The story has been soft demand, particularly in its Animal Safety segment, where core sales were down by -7.8% despite strength in specific products. Management is pointing to mixed inventory levels at wholesalers, and the timing of some larger orders as a headwind this quarter. That being said, the company believes conditions are at a \"cyclical low\" suggesting an outlook for some stability going forward. In the Food Safety group, core sales climbed by 1.1% with Neogen finding some success in Latin America with a solid global performance in product categories like biosecurity, culture media, and indicator testing. Nevertheless, adjusted EBITDA of $43.7 million this quarter was down by 17% y/y with lower volumes alongside higher logistical costs hitting margins. source: company IRNeogen is reaffirming guidance, targeting full-year 2025 revenue between $925 and $955 million representing a 1.7% increase at the midpoint compared to 2024 assuming a ramp-up in sales through the second half of the year. The company also expects 2025 adjusted EBITDA of around $225 million, a slight improvement from the $213 million result last year capturing some financial efficiency efforts and a shifting sales mix into more valued added categories. On the balance sheet, Neogen ended the quarter with $121 million in cash against $900 million in long-term financial debt. A net leverage ratio of approximately 3.5x is elevated, but otherwise stable in the near term. What's Next for Neogen? The attraction of Neogen as a potential investment opportunity starts with the company's industry position in food production testing diagnostics and the livestock health niche. There is an understanding that headline-making food recalls and contamination incidents make Neogen's solutions more important than ever. On the other hand, maybe the biggest surprise in recent years has been the failure of Neogen's Genomics initiatives to materialize as a major growth driver. The services related to detecting microorganisms in livestock or DNA testing for breeding optimization were once seen as a significant opportunity allowing Neogen to differentiate itself as a leader in this segment compared to the more commoditized product categories. In Q2, the company's Genomics business experienced a core revenue decline in the mid-single-digit range which sums up the general malaise toward the stock that is having trouble breaking out with more consistent growth. source: company IRSo to explain the stock price weakness in recent years, Neogen has simply failed to deliver on its loftier targets in the past and has its work cut out to rebuild investor confidence. The consensus outlook for flat revenue in 2025 and just a 5% increase into fiscal 2026 leaves a lot to be desired. Seeking AlphaIn terms of valuation, NEOG trading at a forward P/E of 27x or even 17x as an EV to forward EBITDA multiple doesn't necessarily scream value considering the weak trends. The main risk to consider is that further setbacks in the quarterly results would open the door for a deeper share price correction. Data by YChartsFinal Thoughts  We rate NEOG as a hold, balancing the strong points of its fundamentals including recurring profitability and leadership in core segments against the ongoing uncertainties and poor financial trends. For long-time shareholders, it's likely too late to exit the stock, as many of the negatives may have already been priced in. At the same time, investors on the sidelines should wait for some evidence that growth is rebounding.","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":"analysis","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/2474602397"}