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Neogen (NASDAQ:NEOG) Corporation’s stock has touched a 52-week low, with shares falling to $8.97, reflecting a period of significant pressure for the company. According to InvestingPro data, the stock has declined over 9% in the past week alone, with a current market capitalization of $1.96 billion. This latest price level represents a stark contrast to the stock’s performance over the past year, which has seen Neogen’s shares decline by nearly 40%. While the company maintains strong liquidity with a current ratio of 3.77, its recent performance has been challenging, with negative returns on assets at -11%. The 1-year change data underscores the challenges faced by the company in a competitive market, as investors and stakeholders look closely at the factors contributing to this downward trend. Neogen’s management is likely to be focusing on strategic initiatives to regain market confidence and drive future growth. Analysts maintain an optimistic outlook, with expectations of profitability this year and a consensus target price range of $13-15. For deeper insights into Neogen’s valuation and growth prospects, investors can access comprehensive analysis through InvestingPro’s detailed research reports.
In other recent news, Neogen Corporation announced its preliminary financial results for the second quarter ending November 30, 2024, reporting revenues of $231.3 million, a slight increase from the previous year’s $229.6 million. Despite this growth, the company faced a net loss of $456.3 million due to a non-cash goodwill impairment charge related to its acquisition of the former 3M Food Safety Division. Excluding this charge, Neogen’s adjusted net income was $24.4 million, or $0.11 per diluted share. Additionally, the company has introduced a new salmonella detection kit for the poultry industry, aiming to enhance pathogen testing with improved accuracy and sensitivity.
Neogen’s first-quarter fiscal 2025 results also revealed an earnings per share (EPS) of $0.11, surpassing analyst expectations of -$0.01, with revenues exceeding forecasts at $231.3 million. This positive performance comes amidst ongoing challenges in market dynamics and operational transitions. In terms of product development, Neogen unveiled the Neogen Molecular Detection Assay 2 – Quantitative Salmonella, which aims to assist poultry producers in verifying food safety interventions. Meanwhile, the National Labor Relations Board withdrew an unfair labor practices charge against Neogen, enabling a unionization vote for certain employees.
Despite these developments, Neogen disclosed material weaknesses in its internal controls over financial reporting, with further details to be provided in its forthcoming Form 10-Q. The company is maintaining its full-year guidance, projecting revenue between $905 million and $925 million, and adjusted EBITDA in the range of $205 million to $215 million. Analyst feedback suggests Neogen’s focus on food safety and operational improvements, with Piper Sandler and William Blair analysts engaging in discussions regarding customer recovery and market expansion.
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