What Happened?
Shares of life sciences company Neogen (NASDAQ:NEOG) jumped 27.6% in the morning session after the company reported fourth-quarter results that far surpassed Wall Street's expectations and raised its financial forecast for the full year.
The life sciences company posted adjusted earnings per share of $0.10, easily beating the analyst consensus of $0.07. Revenue for the quarter came in at $224.7 million, also topping the anticipated $209.7 million. Despite sales falling 2.8% year on year, investors were encouraged by the significant beats on both the top and bottom lines. Looking ahead, Neogen raised its full-year revenue guidance to a midpoint of $850 million, ahead of Wall Street estimates. The company also increased its outlook for adjusted EBITDA to approximately $175 million, signaling confidence in its future performance.
Is now the time to buy Neogen? Access our full analysis report here.
What Is The Market Telling Us
Neogen’s shares are extremely volatile and have had 42 moves greater than 5% over the last year. But moves this big are rare even for Neogen and indicate this news significantly impacted the market’s perception of the business.
The biggest move we wrote about over the last year was 7 months ago when the stock dropped 24% on the news that the company provided updated Q4 fiscal 2025 outlook that pointed to temporary headwinds impacting gross margin, though sales are expected to remain in line with the previous estimates. The company also anticipated a nearly $5 million impact from tariffs and announced strategic divestitures, which are expected to weigh heavily on growth and profits.
Neogen is up 36.2% since the beginning of the year, but at $9.54 per share, it is still trading 27% below its 52-week high of $13.07 from January 2025. Investors who bought $1,000 worth of Neogen’s shares 5 years ago would now be looking at an investment worth $227.43.
The 1999 book Gorilla Game predicted Microsoft and Apple would dominate tech before it happened. Its thesis? Identify the platform winners early. Today, enterprise software companies embedding generative AI are becoming the new gorillas. Click here for access to our special report that reveals one profitable leader already riding this wave.