Food and animal safety testing products company Neogen Corp. (NEOG), Friday reported an 18% increase in second quarter profit from a year ago, beating Street estimates by a cent. Results for the quarter were helped by double-digit growth in revenues, driven mainly by Food Safety division sales.
The Lansing, Michigan-based Neogen's second-quarter net income rose to $4.61 million or $0.20 per share, after adjusting for a 3-for-2 stock split, from $3.90 million or $0.17 per share in the prior year period. On average, six analysts polled by Thomson Reuters expected the company to report earnings of $0.19 per share for the quarter.
Quarterly revenues advanced 13% to $35.25 million from $31.18 million in the comparable period last year, exceeding three analysts' estimate of $34.45 million.
Commenting on the results, James Herbert, chief executive officer and chairman, said, "Our second quarter results were exceptional considering the economic situation encountered by many of our customers. We can report strong double-digit increases in revenues, same-store sales and profitability, while at the same time making solid progress in several fundamental areas during the quarter that will drive future growth."
Neogen's Food Safety division's second quarter revenue increased 20% to $18.45 million from $15.38 million a year ago, while Animal Safety division had sales of $16.81 million, up from $15.81 million last year.
Neogen's operating income as a percentage of sales increased to 20.5% in the current quarter from the previous year's comparable quarter of 18.8%.
Year-to-date net income rose 18% to $9.0 million or $0.39 per share from $7.63 million or $0.34 per share in the corresponding period last year. Revenues grew 13% to $67.6 million from $59.99 million in the previous year.
NEOG is trading at $23.05, down $0.72 or 3.03%, on a volume of about 85 thousand shares.
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