Neogen Corp. (NEOG) analysts are projecting a long-term growth rate of 19% as shares trade at a PEG of 1.3. The company continues to report solid quarterly performances with 3 surprises in the past year.
Company Description
Neogen Corporation develops, manufactures, and markets a diverse line of products dedicated to food and animal safety. The company's food safety segment consists primarily of diagnostic test kits and related products, including dehydrated culture media.
The kits are marketed to food producers and processors to aid in the detection of food-borne bacteria, natural toxins, food allergens, drug residues, pesticide residues, plant disease infections and levels of general sanitation.
Revenues Surging
In its latest quarterly announcement Neogen reported a year-over-year increase of 26% in net revenues. Revenues for the first fiscal quarter of 2009 were $28.8 million.
Net income rose in-step 24% to $3.7 million. Earnings per share were 25 cents, up from 21 cents one year ago.
Beat Wall Street Estimates
Neogen's earnings announcement surprised analysts whose consensus estimate was 23 cents per share. In the past 4 quarters, the company has 3 surprises and 1 report inline with estimates.
Estimates for full-year 2009 are currently averaging 95 cents per share, 17% higher than 2008. The consensus for 2009 is a 25% increase to $1.19.
Highly Ranked
Neogen is ranked 8th out of 67 companies in the medical products industry. The industry itself is the 17th ranked group out of 217 in the Zacks Industry rank.
The long term growth of 19% is coming at a discount relative to the industry. Shares of NEOG are trading with a PEG ratio of 1.3 versus its peers average of 2.0.
The Chart
The stock has recently sold off but could find some support near $21-$22 per share. Take a look at the chart below.
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