What Happened?
Shares of life sciences company Neogen (NASDAQ: NEOG) fell 10.2% in the morning session after the company reported disappointing fourth-quarter financial results, which showed a decline in revenue and adjusted earnings that fell short of analyst expectations. The food and animal safety company announced that revenue for the quarter ended May 31, 2025, decreased by 4.8% to $225.5 million compared to the prior year. Neogen also posted a significant net loss of $612.2 million, which it attributed mainly to a non-cash goodwill impairment charge related to its acquisition of the former 3M Food Safety Division. On an adjusted basis, net income was $0.05 per share, a drop from $0.10 in the same period last year and below Wall Street's consensus estimates. Management cited softer market conditions and the effects of inflation as key factors behind the weak performance.
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What Is The Market Telling Us
Neogen’s shares are extremely volatile and have had 37 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 5 days ago when the stock gained 3.4% on the news that the company announced the appointment of Mike Nassif as its new Chief Executive Officer and President. Nassif was set to take the helm on August 11, 2025, succeeding John Adent. The incoming CEO previously served as the Global President of the Point-of-Care Diagnostics business at Siemens Healthineers. During his tenure there, he was instrumental in driving significant growth. This leadership change appeared to resonate positively with investors, who likely viewed Nassif's track record as a strong indicator of his potential to guide Neogen's future operational direction and market position.
Neogen is down 59.3% since the beginning of the year, and at $4.86 per share, it is trading 72.3% below its 52-week high of $17.58 from July 2024. Investors who bought $1,000 worth of Neogen’s shares 5 years ago would now be looking at an investment worth $128.62.
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