Neogen (NEOG) FY Conference June 04, 2025 09:40 AM ET Speaker0 Good morning, everyone. Thank you for joining us here. My name is Brandon Vasquez. I am the research analyst here at William Blair covering Neogen. I am required to inform you that for a complete list of disclosures, please go to our website at WilliamBlair.com. Happy to have CFO and COO Dave Namora with us from Neogen this morning who's gonna present. We he will go over presentation if we have a couple minutes. Like usual, I'll ask a couple que ...

William Blair Growth Stock Conference June 4, 2025 Disclaimer Forward-Looking Statements This presentation includes "forward-looking statements" as that term is defined in Section 21E of the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on Neogen's current expectations and are subject to risks and uncertainties, which could cause actual results to differ from those stated or implied by such forward-looking stat ...

Neogen Corporation (NEOG) has recently entered into a strategic licensing and supply agreement with Syngenta. Under the agreement, Neogen will have exclusive rights to market and sell Talon-G and Talon Weatherblok XT rodenticides in the United States and Canada. The agreement is likely to expand Neogen’s rodenticide portfolio with well-established and highly effective products. NEOG’s Likely Stock Trend Following the NewsFollowing the announcement, shares of NEOG moved 4.7% north to $6.70 in yesterday’s aft ...

It has been about a month since the last earnings report for Neogen (NEOG) . Shares have added about 6.4% in that time frame, underperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Neogen due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.How Have Estimates Been Moving Since Then?It turns out ...

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Neogen Corporation (NEOG) reported third-quarter fiscal 2025 adjusted earnings per share (EPS) of 10 cents, which missed the Zacks Consensus Estimate by 23.1%. The bottom line fell 16.7% from the year-ago quarter’s figure.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Neogen’s Q3 RevenuesRevenues in the quarter decreased 3.4% on a year-over-year basis to $220.9 million. Core revenues increased 0.2%. Acquisitions and discontinued product lines had a negative impact of 0.5% while forei ...

Core Insights - Neogen (NEOG) reported a revenue of $220.98 million for the quarter ended February 2025, reflecting a year-over-year decline of 3.4% and an EPS of $0.10, down from $0.12 in the same quarter last year [1] - The revenue fell short of the Zacks Consensus Estimate of $223.03 million by 0.92%, and the EPS was 23.08% below the consensus estimate of $0.13 [1] Revenue Breakdown - Animal Safety revenues totaled $68.25 million, slightly below the average estimate of $68.77 million, marking a 4% decline year-over-year [4] - Food Safety revenues were reported at $152.73 million, also below the average estimate of $154.26 million, representing a 3.2% decrease year-over-year [4] - Specific segments within Animal Safety showed varied performance, with Life Sciences revenues increasing by 9.6% to $1.50 million, while Veterinary Instruments & Disposables fell by 14.3% to $15.41 million [4] - In Food Safety, revenues from Natural Toxins & Allergens decreased by 10.9% to $17.60 million, while Rodent Control, Insect Control & Disinfectants increased by 16.6% to $11.82 million [4] - Genomics Services in Animal Safety significantly outperformed estimates, reporting $17.01 million against an average estimate of $6.43 million [4] - Conversely, Food Safety Genomics Services reported $5.70 million, falling short of the average estimate of $18.46 million [4] Stock Performance - Neogen's shares have declined by 28.8% over the past month, compared to a 13.5% decline in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Financial Performance - Total revenues for the three months ended February 28, 2025, were $220.98 million, a decrease of 3.6% compared to $228.81 million for the same period in 2024[12]. - Product revenues decreased to $196.49 million for the three months ended February 28, 2025, down from $202.18 million in the prior year, representing a decline of 2.4%[12]. - Net loss for the three months ended February 28, 2025, was $10.96 million, compared to a net loss of $2.02 million for the same period in 2024, indicating a significant increase in losses[12]. - Gross profit for the three months ended February 28, 2025, was $110.27 million, down from $116.88 million in the same period last year, reflecting a decrease of 5.7%[12]. - Operating income for the three months ended February 28, 2025, was $5.42 million, a decrease of $6.61 million from $12.02 million in the same period of 2024[85]. - Adjusted EBITDA decreased by $4.2 million to $48.513 million for the three months ended February 28, 2025, with an Adjusted EBITDA margin of 22.0%, down from 23.0% in the prior year[120]. - For the nine months ended February 28, 2025, the net loss was $479.848 million, with a net loss margin of -71.7%, compared to a net loss of $4.006 million and a margin of -0.6% in 2024[119]. Revenue Segments - The Food Safety segment generated $152.73 million in revenue for the three months ended February 28, 2025, compared to $157.75 million in 2024, reflecting a decline of 3.2%[41]. - The Animal Safety segment reported revenues of $68.25 million for the three months ended February 28, 2025, down from $71.06 million in 2024, a decrease of 3.9%[41]. - The Food Safety segment's revenue decreased by $5.0 million (3%) for the three months and $12.1 million (2%) for the nine months ended February 28, 2025, primarily due to currency headwinds and discontinued product lines[101][102]. - The Animal Safety segment's revenue decreased by $2.8 million (4%) for the three months and $6.1 million (3%) for the nine months ended February 28, 2025, attributed to decreased sales of veterinary instruments and lower genomics volume[103][104]. Expenses and Impairments - Operating expenses for the three months ended February 28, 2025, totaled $104.85 million, remaining relatively stable compared to $104.86 million in the prior year[12]. - The company reported a goodwill impairment of $461.39 million for the nine months ended February 28, 2025[12]. - General and administrative expenses rose to $55.8 million for the three months ended February 28, 2025, compared to $52.1 million in the same period of 2024, driven by fixed asset impairment and restructuring charges[93]. - Goodwill impairment charges amounted to $461.4 million during the nine months ended February 28, 2025, with no charges recorded in the prior year[95]. Assets and Equity - Total assets as of February 28, 2025, were $4.04 billion, a decrease from $4.55 billion as of May 31, 2024[10]. - Total stockholders' equity decreased to $2.66 billion as of February 28, 2025, compared to $3.14 billion as of May 31, 2024[10]. - Cash and cash equivalents decreased to $127.71 million as of February 28, 2025, down from $170.61 million as of May 31, 2024[10]. - Neogen's total assets as of February 28, 2025, were $2.597540 billion, reflecting a slight increase from previous periods[19]. Cash Flow and Capital Expenditures - Cash provided by operating activities was $41.702 million for the nine months ended February 28, 2025, compared to $8.517 million in the prior year[22]. - Cash used for investing activities increased by $71.5 million to $83.266 million for the nine months ended February 28, 2025, primarily due to increased capital expenditures[130]. - Capital expenditures for the nine months ended February 28, 2025, were $88.5 million, compared to $87.2 million in 2024[130]. - The company estimates capital expenditures of $100 million for fiscal year 2025, including approximately $70 million for the integration of acquired 3M FSD products[132]. Tax and Compliance - Income tax expense for the three months ended February 28, 2025, was $1,230, while the income tax benefit for the nine months was $22,060, primarily due to pre-tax losses from amortization and interest expenses related to the 3M FSD acquisition[48]. - The company reported a net tax benefit of $22.1 million for the nine months ended February 28, 2025, compared to a tax benefit of $3.9 million in the prior year, influenced by pre-tax losses and goodwill impairment charges[98]. - The company has no required principal payments on its Credit Facilities through fiscal year 2026 and was in compliance with all financial covenants as of February 28, 2025[127]. Shareholder Actions - The Company has authorized a share repurchase program for up to 6,000,000 shares of common stock, with 5,900,000 shares remaining available for repurchase as of February 28, 2025[145]. - No shares were purchased under the repurchase program during the fiscal quarter ended February 28, 2025[145].

Company Performance - Simply Good Foods Company reported second-quarter FY25 sales growth of 15% year-on-year to $359.65 million, exceeding the analyst consensus estimate of $354.4 million [2] - Adjusted EPS of 46 cents also beat the consensus estimate of 40 cents [2] Stock Movements - Venus Concept Inc. shares surged 242% to $9.84 after securing $23.24 million in bridge financing [9] - Phio Pharmaceuticals Corp. shares increased 116% to $2.18 following a recommendation for dose escalation in its Phase 1b trial [9] - 22nd Century Group, Inc. shares rose 19% to $1.25 after announcing new agreements for filtered cigar products [9] - Neogen Corporation shares fell 29% to $4.98 due to worse-than-expected third-quarter results and below-estimate FY25 sales guidance [9] - Vincerx Pharma, Inc. shares dropped 54% to $0.2323 after terminating a potential merger [9] - Bloom Energy Corporation shares decreased 10% to $15.32 after a downgrade from Neutral to Sell by an analyst [9]

Company Performance - Neogen reported quarterly earnings of $0.10 per share, missing the Zacks Consensus Estimate of $0.13 per share, and down from $0.12 per share a year ago, representing an earnings surprise of -23.08% [1] - The company posted revenues of $220.98 million for the quarter ended February 2025, missing the Zacks Consensus Estimate by 0.92%, and down from $228.81 million year-over-year [2] - Neogen has not surpassed consensus EPS estimates over the last four quarters, although it has topped consensus revenue estimates three times during the same period [2] Stock Performance - Neogen shares have declined approximately 42% since the beginning of the year, compared to a decline of -15.3% for the S&P 500 [3] - The current Zacks Rank for Neogen is 4 (Sell), indicating expectations for the stock to underperform the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.14 on revenues of $237.04 million, and for the current fiscal year, it is $0.45 on revenues of $908.28 million [7] - The outlook for the Medical - Products industry, to which Neogen belongs, is currently in the bottom 33% of over 250 Zacks industries, which may negatively impact stock performance [8]