Why Shares of Neogen Are Slumping This Week
Shares of Neogen Corporation (NASDAQ: NEOG) were down more than 16% for the week, according to data provided by S&P Global Market Intelligence. The healthcare company, which specializes in food and animal safety solutions, saw its stock close last week at $23.33. It then fell to as low as $20.22 on Thursday after Neogen released preliminary fiscal 2024 first-quarter numbers. The stock is still up more than 27% this year.
The company announced, in an investor presentation at the Wells Fargo 2023 Healthcare Conference in Boston, that it is expecting fiscal 2024 first-quarter revenue to be slightly below expectations.
Neogen CEO John Adent said that the company's revenue "came in a little lighter than we'd thought." Animal safety revenue is expected to fall by high-single-digit percentages, due to softer genomic sales. While its legacy food safety business was expected to rise in the mid-single digits, the company saw revenue flat from its 3M food safety business mainly due to a weakness in business in China and in Asia overall, tied to supply constraints.
Source Fool.com
