Shares of food and animal safety products provider Neogen (NASDAQ:NEOG) are trending lower today after the company’s first-quarter numbers failed to surpass analysts’ expectations. While revenue soared by 73% year-over-year to $229 million, the figure still fell short of expectations by $2.1 million. Additionally, net income during the quarter dropped to $1.5 million as compared to $5.2 million in the year-ago period.
While the company’s legacy Food Safety business is tracking well, it experienced destocking in its Animal Safety business as channel inventory levels hit multi-year lows. Additionally, weakness in China led to lower growth in the company’s 3M Food Safety division.
Despite these challenges, Neogen anticipates an improved end-market environment in the second half of the year. For Fiscal Year 2024, the company expects revenue to be in the range of $955 million to $985 million. Adjusted EBITDA for the year is anticipated in the range of $235 million to $255 million.
What is the NEOG Stock Price Forecast?
Overall, the Street has a consensus price target of $26 on Neogen, alongside a Moderate Buy consensus rating. This implies a 53.3% potential upside in the stock.
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