Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of food and animal safety company Neogen
So what: The company's earnings weren't as strong as the market anticipated, with revenue climbing just 2.3% to $44.9 million versus a $47.5 million estimate. Earnings per share were $0.22, $0.04 lower than expected.
Now what: Management is expecting higher growth levels to return and is expanding sales and marketing to meet that goal. After panicking over the miss early in trading, the market bought into the plan; shares are currently down just 3%. I would like to see some actual results from the higher growth plan before buying in, especially after such a large revenue miss this quarter.
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