Thursday, food and animal safety products supplier Neogen Corporation (NEOG) reported an 18% increase in profit for the first quarter, which also beat analysts' estimates, benefited by revenue growth across all business segments.
For the quarter, net earnings were $4.40 million or $0.29 per share compared with $3.73 million or $0.25 per share in the previous-year period.
On an average, five analysts polled by Thomson Reuters expected the company to earn $0.26 per share for the quarter. Analysts' estimates typically exclude special items.
The Lansing, Michigan-based company's revenues for the quarter rose 12.3% to $32.35 million from $28.81 million in the first quarter of fiscal 2009. Analysts expected Neogen to generate revenues of $32.04 million during the quarter.
On a segmental basis, revenues from food safety were $17.48 million as against $15.55 million, and revenues from animal safety increased to $14.87 million from $13.26 million last year.
Neogen said the rise in food safety sales was entirely organic, while the year-over-year animal safety increase benefited from the purchase of DuPont cleaners and disinfectants in July 2008, and the acquisition of privately held International Diagnostic Systems, or IDS, in May 2009.
During the period, research and development expenses incurred by the company increased to $1.46 million from $952 thousand a year ago.
Neogen's gross margin for the three-month period was 53.4% of sales, up from 51.4% in the comparable period prior year.
"The quarter marked the 66th consecutive profitable quarter from operations for the company, and was the 70th of the past 75 quarters when Neogen reported revenue increases as compared with the previous year," the company noted.
NEOG is currently trading at $30.89 per share, up 1.35%, on the Nasdaq.
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