Neogen sees FY27 revenue between $880 million and $885 million, including Genomics division contribution.
The company expects FY27 adjusted EBITDA of $180 million to $182 million, including the Genomics division.
Neogen guides Q1 FY27 revenue to $207 million-$209 million and adjusted EBITDA to about $37 million.
Quarterly results
U.S. food safety solutions firm's fiscal Q4 revenue was flat year over year, beating analyst expectations.
Adjusted EPS and adjusted net income for Q4 beat analyst expectations.
Adjusted EBITDA margin rose to 20.2% from 18.0%, aided by cost initiatives and gross margin gains.
Drivers and key details
Food Safety segment - Core Food Safety revenue grew 5.8% in Q4, the highest rate since FY23, driven by strong gains in Indicator Testing, Culture Media, and Bacterial and General Sanitation.
Animal Safety supply chain - Animal Safety revenue remained down year over year but rose 7% sequentially as supply-related challenges were largely resolved.
Margin improvement - Gross margin and adjusted gross margin rose, helped by favorable product mix and pricing changes.
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell". The average consensus recommendation for the medical equipment, supplies & distribution peer group is "buy". Wall Street's median 12-month price target for Neogen Corp is $11.50, about 22.3% above its July 29 closing price of $9.40.
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