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What: Shares of food safety testing expert Neogen
So what: The company just reported first-quarter results, missing analyst expectations on both the top and bottom lines. Due to a shift in product sales toward the lower-margin animal safety segment, gross margins also declined by nearly 3% from the year-ago quarter.
Now what: That's not the end of sliding margins, because Neogen is planning to do even more animal-focused business. For example, the company just bought a facility in Kentucky that will "greatly expand our Animal Safety operational capabilities." None of that sounds particularly exciting. On the other hand, Neogen is expanding into new markets like China and Brazil, has a lucrative marketing agreement with chemicals giant DuPont
Interested in more info on Neogen? Add it to your watchlist by clicking here.
Fool contributor Anders Bylund holds no position in any of the companies discussed here. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool is investors writing for investors.