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Neogen Corporation’s stock has faced significant headwinds, touching a 52-week low of $9.7 as the market grapples with various economic pressures. According to InvestingPro data, the company maintains strong liquidity with a current ratio of 3.77, though it trades at a relatively high EBIT multiple. This latest price level reflects a stark contrast to the company’s performance over the past year, with Neogen Corp (NASDAQ:NEOG) experiencing a substantial 1-year change, plummeting by -43.45%. Investors are closely monitoring the stock as it navigates through a challenging period, marked by this notable decline in value. The company, known for its food and animal safety products, is now at a critical juncture as it attempts to regain its footing in a volatile market environment. While currently unprofitable, InvestingPro analysis indicates positive prospects with analysts forecasting profitability this year. Discover 4 more exclusive ProTips and comprehensive valuation metrics with an InvestingPro subscription.
In other recent news, Neogen Corporation reported modest revenue growth for the second quarter, with revenues reaching $231.3 million, a slight increase from the previous year’s $229.6 million. Despite this, the company faced a net loss of $456.3 million, primarily due to a non-cash goodwill impairment charge related to the acquisition of the former 3M Food Safety Division. Excluding this charge, Neogen’s adjusted net income was $24.4 million. In the Food Safety segment, revenues slightly decreased, while the Animal Safety segment saw a 2.8% increase. Meanwhile, Neogen introduced a new salmonella detection kit designed to enhance pathogen testing in the poultry industry, which is expected to support food safety interventions.
The company also faced challenges with its Genomics business, reporting a decline in core revenue. Neogen’s President and CEO, John Adent, highlighted restructuring actions aimed at improving margins in the second half of the fiscal year. Additionally, Neogen was cleared of an unfair labor practices charge by the National Labor Relations Board, allowing its employees to proceed with a unionization vote. Analyst feedback from firms such as Piper Sandler and William Blair suggests that Neogen is focusing on regaining market share and improving operational efficiency. Neogen maintains its previous fiscal year guidance, projecting revenue between $905 million and $925 million and adjusted EBITDA between $205 million and $215 million.
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