Neogen Corporation (NEOG), a leader in food and animal safety solutions, is set to release its Q2 earnings report on Thursday, January 9, 2025. As investors await the announcement, analysts have shared key insights and expectations that could shape market sentiment around the stock.
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Expected Q2 Earnings Report of Neogen Corporation
Wall Street analysts anticipate Neogen will post quarterly earnings of $0.11 per share, consistent with the same quarter last year. Meanwhile, revenue is forecasted to reach $226.37 million, reflecting a year-over-year decrease of 1.4%.
Key Projections for Revenue Metrics
Breaking down the revenue forecasts by segment, analysts predict the following:
- Food Safety: Estimated revenues of $162.38 million, down 1.2% year-over-year.
- Animal Safety: Expected revenues of $63.99 million, representing a 1.9% decline.
- Food Safety – Natural Toxins & Allergens: Anticipated growth of 2% year-over-year, with revenues projected at $21.53 million.
- Animal Safety – Genomics Services: A sharp 66.3% drop year-over-year, with expected revenues of $5.96 million.
These figures underscore a mix of stability and challenges across Neogen’s product lines, highlighting areas of strength and concern.
Stock Target Advisor’s Analysis on Neogen Corporation:
Stock Target Advisor provides a Neutral rating for Neogen, reflecting an equal balance of six positive and six negative signals. Key strengths identified include consistent returns, superior capital utilization, and positive cash flow over the last four quarters. However, concerns such as poor risk-adjusted returns, low earnings growth, and overvaluation metrics on multiple fronts temper these positives.
Explore the latest Analyst Ratings for Neogen Corporation to gain deeper insights into the stock’s potential performance.
As of the last closing price of $12.25, Neogen’s stock has experienced a decline of 37.02% over the past year. Analysts forecast an average target price of $16.38, indicating potential upside of approximately 33.67% over the next 12 months.
Conclusion:
The upcoming Q2 earnings report is pivotal for Neogen Corporation as it navigates a complex financial landscape marked by mixed performance across its key segments.
While the stock offers potential for recovery, challenges such as subdued earnings growth and valuation concerns may weigh on investor sentiment. As January 9 approaches, market participants will closely monitor Neogen’s results and any revisions to future projections.
Muzzammil is a content writer at Stock Target Advisor. He has been writing stock news and analysis at Stock Target Advisor since 2023 and has worked in the financial domain in various roles since 2020. He has previously worked on an equity research firm that analyzed companies listed on the stock markets in the U.S. and Canada and performed fundamental and qualitative analyses of management strength, business strategy, and product/services forecast as indicated by major brokers covering the stock.
