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Neogen’s foodborne pathogen test sees sales surge in 2Q

Sales of foodborne pathogen detection products jumped 24% in the second quarter

Factory workers on a food assembly line
Neogen develops products for food and animal safety, including tests to detect foodborne bacteria

Neogen Corporation (NASDAQ:NEOG) shares took a dip after mixed second-quarter results, despite a boost in its international revenue and strong sales of its foodborne pathogen tests.

The diagnostics testing company reported earnings of $0.31 per share, slightly below last year’s second-quarter earnings of $0.33, but ahead of analyst estimates of $0.30.

The company noted that its previous second quarter benefited from a $3.8 million tax credit, which translated into $0.07 per share as a result of employee stock option exercises.

Shares of the Michigan-based company dipped 4.5% to S$56.39 in Thursday morning trading.

READ: Spectrum Pharmaceuticals shares crash after failing to get FDA's 'breakthrough therapy' label

Quarterly revenue totaled $107.1 million, higher than the $100.6 million reported a year ago, but falling short of consensus estimates of $109 million.

"We are generally pleased with our operational performance, considering the continued sluggish animal protein markets and currency headwinds we faced in the quarter," said CEO John Adent in the company’s press release.

"When we consider the tremendous opportunities that exist for Neogen outside of the United States, we are willing to accept the occasional bump in the road from adverse currency conversions,” he added.

The company sells its products in 129 countries, seeing a 10% increase in international revenue in its second quarter.

Adent highlighted strong sales in its commercialized products, specifically its foodborne pathogen, like listeria and salmonella, and natural toxin product lines.

Sales of foodborne pathogen detection products jumped 24%, led by a 35% increase in sales of tests to detect listeria.

Neogen develops products for food and animal safety, including tests to detect foodborne bacteria, natural toxins, food allergens, drug residues, plant diseases and sanitation issues.

 

Contact Lenore Fedow at [email protected]

Follow her on Twitter@LenoreMariee

Quick facts: Neogen Corporation

Price: 77.41 USD

NASDAQ:NEOG
Market: NASDAQ
Market Cap: $4.11 billion
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