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Feb 29, 2024

Neogen Q3 2024 Earnings Report

Neogen's Q3 2024 results were announced, revealing a revenue increase but a net loss, alongside progress in integrating the former 3M Food Safety business.

Key Takeaways

Neogen reported a 4.8% increase in revenue to $228.8 million for the third quarter of fiscal year 2024, but experienced a net loss of $(2.0) million, or $(0.01) per diluted share. Adjusted Net Income was $26.4 million, or $0.12 per diluted share. The company is updating its full-year outlook due to slower-than-anticipated recovery of order fulfillment rates.

Revenue increased by 4.8% to $228.8 million.

Net loss was $(2.0) million, or $(0.01) per diluted share.

Adjusted Net Income was $26.4 million, or $0.12 per diluted share.

Full-year outlook is being updated to reflect slower order fulfillment rates.

Total Revenue
$229M
Previous year: $218M
+4.8%
EPS
$0.12
Previous year: $0.12
+0.0%
Gross Margin
51.1%
Adjusted EBITDA Margin
23%
Previous year: 23.5%
-2.1%
Gross Profit
$117M
Previous year: $108M
+8.3%
Cash and Equivalents
$161M
Previous year: $183M
-11.9%
Free Cash Flow
-$61.9M
Total Assets
$4.58B
Previous year: $4.51B
+1.6%

Neogen

Neogen

Neogen Revenue by Segment

Forward Guidance

The company is updating its full-year outlook to reflect a slower-than-anticipated recovery of order fulfillment rates, which are impacting the ability to consistently meet end-market demand.

Challenges Ahead

  • Slower-than-anticipated recovery of order fulfillment rates
  • Impact on the ability to consistently meet end-market demand
  • Revenue is now expected to be in the range of $910 million to $920 million
  • Adjusted EBITDA in the range of $210 million to $215 million
  • Capital expenditures to be approximately $130 million

Revenue & Expenses

Visualization of income flow from segment revenue to net income