Neogen Corp. (NEOG) recently reported fiscal first-quarter profit that beat analyst views by two cents, amid higher sales thanks to strong growth in genomics business.
Net income grew to $15.86 million or 30 cents per share, up from a year-earlier profit of $14.52 million or 28 cents per share.
Revenue climbed to $109.32 million, up 8 per cent from $101.42 million.
Total sales in its animal genomics business rose 11 per cent, thanks to accelerating growth in companion animal genetic testing and a new genomic test for whiteleg shrimp. The commercial dairy and beef markets are struggling as COVID-19 outbreaks are disrupting supply chains and are causing poor economic conditions.
Analysts had expected a per-share profit of 28 cents, on $105.79 million in revenue for the first quarter of its 2021 fiscal year, which ended Aug. 31.
The company CEO said encouraging results were largely due to the diverse portfolio of products and services. The company saw increased demand for biosecurity products, including cleaners, disinfectants, and hand sanitizers.
“We are also pleased with the tremendously positive market reaction following the recent launch of our next generation automated general microbiology test system, Soleris NG,” Neogen president John Adent said in a statement.
Revenue from the food safety stood at $54.18 million. Sales from the animal safety division rose to $55.14 million.
Gross margin stretched to 46 per cent from 47.5 per cent, resulting from a shift in product mix for diagnostic products in the food safety segment, which has lower margins.
Shares of the maker of medical testing kits gained 4 per cent to reach $77.57 each on the Nasdaq.