Food and animal safety products manufacturer Neogen Corp. (NEOG) reported an increase in third quarter profit, as revenues rose 11% year-on-year.
Net income for the third quarter increased to $2.82 million or $0.19 per share, from $2.66 million $0.18 per share in the same quarter last year.
On average, four analysts polled by Thomson Reuters expected earnings of $0.21 per share for the quarter. Analysts' estimates typically exclude one-time items.
Revenues for the quarter increased 11% to $27.84 million from $25.18 million in the year-ago quarter, but came below Street estimates of $28.75 million.
Neogen's Animal Safety Division led the company's third quarter revenue increase, with sales up 20.5% to $13.67 million, while Food Safety posted an increase of 2.4% in sales to $14.17 million.
Animal Safety's organic sales growth, however, was offset by an overall decline in third quarter orders placed by distributors as they implemented plans to reduce inventories in response to the economic recession.
Richard Current, chief financial officer, said, "Neogen Europe's outstanding third-quarter sales performance was almost totally nullified by the weakening British currency."
For the nine-month period, net income increased 17% to $10.46 million or $0.69 per share from $8.92 million or $0.60 per share in the year-earlier period.
Revenue for the period was $87.83 million, up 17% from $75.30 million in the prior-year period.
NEOG is currently trading at $17.51, down $2.24 or 11.34%, on the Nasdaq.
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