What Happened?
Shares of life sciences company Neogen (NASDAQ: NEOG) jumped 21.4% in the morning session after the company reported third-quarter 2025 financial results that surpassed revenue expectations while its earnings were in line with estimates.
The life sciences company posted revenue of $209.2 million, beating Wall Street's estimates by 2.6%, although this represented a 3.6% decline year on year. Adjusted earnings per share came in at $0.04, which was in line with analyst consensus. Investors were likely encouraged by the company's full-year outlook. Neogen reconfirmed its full-year revenue guidance with a midpoint of $830 million, which was slightly above analyst expectations.
Additionally, its full-year EBITDA guidance of $170 million at the midpoint also came in ahead of consensus estimates of $163.3 million, suggesting better-than-expected profitability for the year ahead.
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What Is The Market Telling Us
Neogen’s shares are extremely volatile and have had 38 moves greater than 5% over the last year. But moves this big are rare even for Neogen and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 9 days ago when the stock gained 2.6% on the news that the company's shares rebounded after a series of recent developments, including an upcoming earnings announcement and a renewed sponsorship agreement.
The move reversed a 1.41% decline from the regular trading session. Developments that caught investor attention included a renewed sponsorship deal with US Equestrian, which is aimed at advancing equine health education. The company was also in focus due to ongoing restructuring efforts and a recent plan for a CFO transition.
Separately, CJS Securities initiated coverage on Neogen with a 'Market Perform' rating. This activity occurred within a positive industry backdrop, as the global food safety compliance technologies market was projected to grow significantly over the next decade.
Neogen is down 40.5% since the beginning of the year, and at $7.10 per share, it is trading 56.7% below its 52-week high of $16.40 from November 2024. Investors who bought $1,000 worth of Neogen’s shares 5 years ago would now be looking at an investment worth $197.77.
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