Neogen Corporation (NASDAQ:NEOG) reports quarter net income was $16,276,000, or $0.31 per share

Neogen Corporation (NASDAQ:NEOG) changed -0.78% to recent value of $65.26. The stock transacted 134425 shares during most recent day however it has an average volume of 194.24K shares. It spotted trading -18.25% off 52-week high price. On the other end, the stock has been noted 28.97% away from the low price over the last 52-weeks.

On Dec. 23, 2019, Neogen Corporation (NASDAQ:NEOG) revealed that its revenues for the second quarter of its 2020 fiscal year, which ended Nov. 30, were $107,803,000, compared to the previous year’s second quarter revenues of $107,098,000. Current year-to-date revenues were $209,227,000, compared to $206,724,000 for the same period a year ago.

The second quarter was the 111th of the past 116 quarters that Neogen reported revenue increases as compared with the previous year — including all consecutive quarters in the last 14 years.

Second quarter net income was $16,276,000, or $0.31 per share, compared to the prior year’s $16,051,000, also $0.31 per share. Net income for the second quarter was benefitted by an effective tax rate of 15.3%; the rate in last year’s second quarter was 18.5%. Current year-to-date net income was $30,928,000, or $0.59 per share, compared to $31,288,000, or $0.60 per share, for the same period a year ago.

For the quarter, we had strong performance in a number of our businesses, but we continue to fight challenges in our animal safety markets, said John Adent, Neogen’s president and chief executive officer. Our overall genomics business continued to grow nicely, with revenues up 17%, driven by strong performance at our U.S. operations; these results were augmented by significant revenue increases at our newest global genomics locations in Australia and Canada.

Our second quarter featured solid growth from our core food safety diagnostic product lines, including our food allergen, general sanitation, and foodborne pathogen testing products, Adent continued. Despite continuing currency headwinds, our international revenues, which now include sales into 129 countries, increased 6% in the quarter.

Neogen’s gross margin was 47.3% of sales in its second quarter of the current year, compared to 46.7% recorded in the same quarter of the prior fiscal year. The change in margin percentage was the result of a product mix shift towards Food Safety products, which have higher margins, and gross margin improvements within our domestic genomics business. Operating income was $18,272,000, or 16.9%, for the second quarter, compared to $18,246,000, or 17.0%, in the same quarter a year ago.

NEOG has a gross margin of 46.50% and an operating margin of 16.50% while its profit margin remained 14.30% for the last 12 months. Its earnings per share (EPS) expected to touch remained -5.20% for this year while earning per share for the next 5-years is expected to reach at 12.00%.

The company has 52.77M of outstanding shares and 51.82M shares were floated in the market. According to the most recent quarter its current ratio was 11.7 that represents company’s ability to meet its current financial obligations. The price moved ahead of -3.78% from the mean of 20 days, -1.40% from mean of 50 days SMA and performed 1.40% from mean of 200 days price. Company’s performance for the week was -5.84%, -0.21% for month and YTD performance remained 14.49%.

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