The 10-second takeaway
For the quarter ended Nov. 30 (Q2), Neogen met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share expanded significantly.
Margins increased across the board.
Neogen booked revenue of $50.7 million. The three analysts polled by S&P Capital IQ hoped for revenue of $51.5 million on the same basis. GAAP reported sales were 13% higher than the prior-year quarter's $44.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.28. The two earnings estimates compiled by S&P Capital IQ predicted $0.28 per share. GAAP EPS of $0.28 for Q2 were 27% higher than the prior-year quarter's $0.22 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 53.8%, 330 basis points better than the prior-year quarter. Operating margin was 20.6%, 250 basis points better than the prior-year quarter. Net margin was 13.4%, 170 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $50.9 million. On the bottom line, the average EPS estimate is $0.28.
Next year's average estimate for revenue is $205.8 million. The average EPS estimate is $1.12.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 247 members out of 256 rating the stock outperform, and nine members rating it underperform. Among 62 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 62 give Neogen a green thumbs-up, and give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Neogen is buy, with an average price target of $47.25.
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