The 10-second takeaway
For the quarter ended Feb. 28 (Q3), Neogen beat slightly on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew. GAAP earnings per share grew significantly.
Margins expanded across the board.
Neogen booked revenue of $51.1 million. The three analysts polled by S&P Capital IQ expected to see net sales of $50.5 million on the same basis. GAAP reported sales were 14% 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 $0.27. The two earnings estimates compiled by S&P Capital IQ forecast $0.28 per share. GAAP EPS of $0.27 for Q3 were 23% 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 53.5%, 250 basis points better than the prior-year quarter. Operating margin was 18.9%, 210 basis points better than the prior-year quarter. Net margin was 13.0%, 130 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $54.5 million. On the bottom line, the average EPS estimate is $0.31.
Next year's average estimate for revenue is $206.3 million. The average EPS estimate is $1.13.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 245 members out of 254 rating the stock outperform, and nine members rating it underperform. Among 61 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 61 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 outperform, with an average price target of $51.00.
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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 position in any of the stocks mentioned. 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.