Neogen reported a solid Q1 2027 with adjusted EPS of $0.08 on $222.8 million in sales, beating forecasts. The company lifted FY2027 revenue guidance to $885-890 million and EBITDA to $181-183 million, signaling continued profitable growth. Nonetheless, shares declined about 3% as investors weighed order timing and inflation-driven demand versus macro headwinds.
The FDA warned Neogen Corp's HYCOAT contamination tied to widespread equine fatalities, the largest such incident in FDA-regulated veterinary products. Regulators cited viable fungi, unsanitary contract manufacturing, and misbranding, prompting a recall and a 15-working-day corrective-action deadline. The event could raise regulatory costs, legal exposure, and near-term pressure on NEOG shares.
NEOG is slated to report Q1 after the Oct 6 close, with consensus EPS of $0.05 on about $208.2M in revenue. The stock benefited from better-than-expected Q4 results and multiple analyst upgrades that raised price targets to at least $12–$14. A solid print or reiteration could lift near-term sentiment and push shares toward recent analyst targets.
Neogen Corporation is set to release its Q3 earnings on April 9, with analysts expecting a drop in earnings per share to 5 cents, down from 10 cents last year. The anticipated revenue of $204.62 million also signifies a decline. The company's recent sale of its Genomics business to Zoetis adds another layer to its financial outlook.
Neogen Corporation has initiated a nationwide recall of all unexpired lots of its Neogen Vet HYCOAT product due to identified microbial contamination. This significant move could negatively affect the company’s sales and reputation in the veterinary market, posing a near-term risk to its stock performance.