Neogen Corp (NASDAQ:NEOG) stock plunges 33.17% (As on April 9, 2:35:33 AM UTC-4, Source: Google Finance) after the company posted lower than expected results for the third quarter of FY25. Adjusted Net Income was $20.9 million, compared to $26.4 million in the prior-year period. The decline in Adjusted Net Income was driven primarily by the lower level of operating income. Gross margin was 49.9% in the third quarter of fiscal 2025. This compares to a gross margin of 51.1% in the same quarter a year ago, with the decrease mainly due to lower revenue and a higher level of integration costs. Third-quarter Adjusted EBITDA was $48.5 million, representing an Adjusted EBITDA Margin of 22.0%, compared to $52.7 million and a margin of 23.0% in the prior-year period. As of February 28, 2025, the Company had total cash of $127.7 million and total outstanding non-current debt of $900.0 million, as well as committed borrowing headroom of $150.0 million.

Moreover, revenues for the Food Safety segment were $152.7 million in the third quarter, a decrease of 3.2% compared to $157.8 million in the prior year, consisting of 1.5% core growth, a negative 0.3% impact from discontinued product lines and a negative foreign currency impact of 4.4%. Revenues for the Animal Safety segment were $68.2 million in the third quarter, a decrease of 4.0% compared to $71.1 million in the prior year. On a global basis, the Company’s Genomics business experienced a core revenue decline in the mid-single-digit range. Increased sales into bovine markets were offset by declines in other areas, consistent with the focused restructuring activities executed in the second quarter.

NEOG in the third quarter of FY25 has reported the adjusted earnings per share of 10 cents, missing the analysts’ estimates for the adjusted earnings per share of 11 cents, according to analysts polled by FactSet. The company had reported the adjusted revenue decline of 3.4 percent to $221 million in the third quarter of FY25, missing the analysts’ estimates for revenue of $224.1 million.

The company said it now expects fiscal 2025 revenue of about $895 million, compared with its previous guidance range of $905 million to $925 million. Four analysts polled by FactSet expect $909.2 million.  Adjusted EBITDA is now expected to be approximately $195 million. The Company now expects capital expenditures to be approximately $100 million.