Neogen Corporation (NEOG) is set to report its second-quarter earnings before the market opens on Thursday, January 8, 2025. The Lansing, Michigan-based company, which specializes in food safety and animal health solutions, faces a somewhat subdued outlook from analysts as it prepares to share results.
Wall Street expects Neogen to post quarterly earnings of 7 cents per share, marking a decline from the 11 cents per share reported in the same quarter last year. That's a pretty substantial drop, though it's worth noting the company is in a transitional period. The consensus revenue estimate stands at $208.38 million, which is actually down from $231.26 million a year earlier. So we're looking at both top-line and bottom-line pressure heading into this print.
Just ahead of earnings, Neogen made some leadership moves. On January 5, the company announced the appointments of Joe Freels as Senior Vice President and Chief Commercial Officer, and Dr. Tammi Ranalli as Senior Vice President and General Manager of Global Food Safety. These appointments suggest the company is positioning itself for a strategic push in its core markets.
Shares of Neogen climbed 2.1% to close at $7.41 on Tuesday, showing some investor optimism despite the mixed analyst sentiment.
What the Most Accurate Analysts Are Saying
Let's dig into how Wall Street's most accurate analysts have been positioning themselves on Neogen recently:
CJS Securities analyst Robert Labick upgraded the stock from Market Perform to Market Outperform on December 10, slapping a $10 price target on the name. That represents significant upside from current levels. Labick has an accuracy rate of 53%.
Piper Sandler analyst David Westenberg, who boasts a 76% accuracy rate, maintained a Neutral rating but bumped his price target from $5 to $6.50 on October 16. That's a meaningful increase, though he's still sitting on the fence about the stock's prospects.
William Blair analyst Brandon Vazquez, with a 68% accuracy rate, downgraded Neogen from Outperform to Market Perform on July 29. That's a notable shift to the sidelines from a previously bullish stance.
Guggenheim analyst Subbu Nambi maintained a Buy rating but reduced his price target from $13 to $10 on June 30. Despite the lower target, Nambi remains constructive on the stock. This analyst carries a 65% accuracy rate.
The analyst community is clearly working through some uncertainty here, with price targets and ratings all over the map. Thursday's earnings report should provide some clarity on whether the company's operational performance justifies the recent optimism or if more caution is warranted.
