Overview

* Neogen Q4 revenue falls 4.8% yr/yr to $225.5 mln, impacted by market conditions

* Net loss of $612.2 mln due to non-cash goodwill impairment from 3M acquisition

* Adjusted EPS of $0.05 misses analyst expectations, per LSEG data

Outlook

* Neogen sees fiscal 2026 revenue between $820 mln and $840 mln

* Company expects fiscal 2026 adjusted EBITDA of $165 mln to $175 mln

* Neogen anticipates significant decline in fiscal 2026 capital expenditures to $50 mln

* Company's fiscal 2026 outlook excludes divested Cleaners & Disinfectants business

Result Drivers

* SOFTER MARKET CONDITIONS - Neogen attributes revenue decline to softer end-market conditions and trade uncertainty, per CEO John Adent

* INTEGRATION COSTS - Transaction and integration costs related to 3M Food Safety Division acquisition impacted gross margin

* PRODUCT LINE DECLINES - Acquisitions and discontinued product lines represented a 0.4% negative impact, while foreign currency was a headwind of 2.6%

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q4 Miss $0.05 $0.07 (2

Adjusted Analysts

EPS )

Q4 EPS -$2.82

Q4 $11.30

Adjusted mln

Net

Income

Q4 Net -$612.20

Income mln

Q4 $40.60

Adjusted mln

EBITDA

Q4 18.0%

Adjusted

EBITDA

Margin

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the medical equipment, supplies & distribution peer group is "buy"

* Wall Street's median 12-month price target for Neogen Corp ( NEOG ) is $7.50, about 27.7% above its July 28 closing price of $5.42

* The stock recently traded at 40 times the next 12-month earnings vs. a P/E of 19 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)