Sales of fungus test kits boost Neogen 3Q profit
Neogen Corp. said Monday its profit increased 38 percent in its fiscal third quarter due to greater sales of food safety test kits.
The company said it earned $3.9 million, or 17 cents per share, over the three months ended Feb. 28. In the same quarter a year earlier, it reported a profit of $2.8 million, or 12 cents per share. Revenue rose 22 percent to $33.8 million from $27.8 million.
According to a Thomson Reuters survey, analysts expected profit of 16 cents per share and $31.6 million in revenue.
In December the company completed a three-for-two stock split, which increased its share count by 50 percent.
Neogen makes test kits for food and animal safety. It said food safety revenue rose to $19.7 million from $14.2 million because it sold more tests for mycotoxins, a type of toxin produced by fungi. The company said cool, wet weather in the corn belt led to greater demand for those tests, and sales to ethanol producers were particularly strong.
Revenue from animal safety kits edged up to $14.1 million from $13.7 million.
In morning trading, Neogen shares rose 78 cents, or 3.1 percent, to $26.11.