Research Desk Line-up: Palatin Technologies Post Earnings Coverage
LONDON, UK / ACCESSWIRE / October 4, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Neogen Corp. (NASDAQ: NEOG), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=NEOG, following the Company's posting of its first quarter fiscal 2018 financial results on September 19, 2017. The maker of medical testing kits reported record first quarter revenues and net income which also exceeded market estimates. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
Get more of our free earnings reports coverage from other constituents of the Diagnostic Substances industry. Pro-TD has currently selected Palatin Technologies, Inc. (NYSE AMER: PTN) for due-diligence and potential coverage as the Company announced on September 25, 2017, its financial results for Q4 FY17 and FY17which ended on June 30, 2017. Register for a free membership today, and be among the early birds that get access to our report on Palatin Technologies when we publish it.
At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on NEOG; also brushing on PTN. With the links below you can directly download the report of your stock of interest free of charge at:
For the first quarter of its 2018 fiscal year, which ended August 31, 2017, Neogen's revenues increased 14% to $95.26 million compared to revenues of $83.65 million in Q1 FY17. The Company's revenue numbers beat analysts' estimates of $95.0 million. Q1 FY18 was the 102nd of the past 107 quarters that Neogen reported revenue growth on a y-o-y basis, including all consecutive quarters in the last 12 years.
Neogen's gross margin was 48.2% of sales in Q1 FY18 compared to the 48.4% recorded in Q1 FY17. The Company's operating income for the reported quarter was $16.42 million, or 17.2% of sales, compared to $14.74 million, or 17.6% of sales, in the year-ago corresponding period.
Neogen's net income jumped 21% to $11.91 million, or $0.31 per share, in Q1 FY18 compared to net income of $9.88 million, or $0.26 per share, in Q1 FY17. The Company's earnings topped Wall Street's estimates of $0.30 per share.
Neogen's Segment Results
During Q1 FY18, the Food Safety segment revenue jumped 19% to $46.73 million compared to revenue of $39.16 million for Q1 FY17, aided by the acquisitions of Quat-Chem and Rogama within the past year, which report through Neogen's operations in Scotland and Brazil, respectively.
For Q1 FY18, sales of the Company's rapid tests for food allergens, such as gluten and peanuts, increased 17% on a y-o-y basis. Sales of AccuPoint® Advanced ATP Sanitation Verification System increased 14% in the reported quarter. In Q1 FY18, sales of the Company's mycotoxin test kits increased 9%, and included a 23% increase in the sales of test kits to detect aflatoxin. This increase was the result of hot and dry weather in global corn-growing regions, which is conducive to the growth of molds that produce aflatoxin.
The Animal Safety segment reported a revenue increase of 9% to $8.52 million for Q1 FY18 versus $44.49 million for Q1 FY17, led by significant growth in Neogen's genomics business, an 11% increase in sales of its insect control product line, and an 11% increase in sales of veterinary instruments, primarily in its needle and syringe product lines.
In the reported quarter, revenues from the Company's worldwide animal genomics business increased 29% on a y-o-y basis, primarily as a result of increased market share in the global cattle and poultry markets.
During Q1 FY18, Neogen generated $19.2 million in cash from operations, aided by improved utilization of working capital. The Company invested $4.5 million in property, equipment, and intangible assets in the reported quarter. Neogen's inventory balances were essentially flat at $73.41 versus $73.14 in the year-ago same period, as the Company continued to work on minimizing backorders. Improving inventory turns and formal programs have been instituted in fiscal 2018 to expand those inventory turns.
At the end of Q1 FY18, Neogen's accounts receivable balances decreased 3% and average day sales outstanding were 59 as at August 31, 2017, compared to 60 days as at May 31, 2017. The Company had cash and investments worth $159.99 million as on August 31, 2017, compared to cash worth $143.64 million as on May 31, 2017.
Neogen's share price finished yesterday's trading session at $79.08, marginally down 0.23%. A total volume of 208.10 thousand shares have exchanged hands, which was higher than the 3-month average volume of 120.53 thousand shares. The Company's stock price soared 15.77% in the last three months, 26.41% in the past six months, and 41.52% in the previous twelve months. Additionally, the stock surged 19.82% since the start of the year. Shares of the Company have a PE ratio of 66.40 and currently have a market cap of $3.01 billion.
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