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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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. 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 has a disclosure policy.