Animal Tester Neogen Sticks To Annual Forecast Despite Tariffs

Core Insights - Neogen Corp. reported better-than-expected first-quarter sales results, leading to a stock rally [1][4] - Analysts from William Blair noted transient issues affecting performance but expect improvements in the future [2] - The company reaffirmed its fiscal 2026 sales guidance of $820 million to $840 million, slightly above consensus estimates [3] Financial Performance - First-quarter adjusted earnings were 4 cents per share, aligning with estimates, while sales reached $209.19 million, down 3.6% year-over-year but exceeding consensus of $204.16 million [5] - Gross margin for Q1 was 45.4%, down from 48.4% a year ago, attributed to production relocation and lower revenue [5] - Adjusted EBITDA for the first quarter was $35.5 million, with an adjusted EBITDA margin of 17.0%, compared to $43.7 million and a margin of 20.1% in the previous year [5] Segment Performance - Food Safety segment revenues were $152.1 million, a decrease of 4.6%, with growth in pathogen detection products [6] - Animal Safety segment sales were $57.1 million, a slight decrease of 0.8%, driven by higher sales in biologics and wound care [6] - Genomics segment returned to positive core revenue growth in the mid-single-digit range, despite a decline in the companion animal market [6]