Neogen's third quarter profit rises 27%
Neogen (NASDAQ:NEOG), a maker of food and animal safety products, said Tuesday third quarter earnings grew 27%, boosted by strong revenue growth in its animal safety division and lower expenses.
For the third quarter ending February 28, the Michigan-based company had earnings of $4.9 million, or 21 cents per diluted share, up from $3.9 million, or 17 cents per diluted share, for the year ago period.
Revenues rose 25% year-over-year to $42.2 million. Analysts polled by Thomson Reuters expected the company to earn 21 cents a share on revenues of $39.8 million.
Neogen's animal safety division saw revenues climb 53% to $21.6 million during the period, as sales of agricultural cleaners and disinfectants increased.
Excluding revenues from GeneSeek, the agricultural genetics business Neogen bought last August in a $13.8 million deal, the animal safety segment would have posted 17% revenue growth.
Meanwhile, the food safety division saw revenues grow 4.5% to $20.6 million due to increased sales of dairy antibiotics, foodborne pathogens, and sanitation monitoring products.
As a proportion of revenue, operating expenses were reduced to 29.7% from 34.6% in the third quarter of fiscal 2010.
At February 28, the company had $47.6 million of cash and $20 million of current liabilities. Since the announcement, Neogen's shares rose roughly 2.5% to $40.96 as of 3:54 pm EST.
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