Neogen Corp (NASDAQ:NEOG) stock fell 7.35% (As on January 10, 11:24:17 AM UTC-4, Source: Google Finance) after the company reported net loss for the second quarter of $456.3 million, or $(2.10) per diluted share, compared to net loss of $3.5 million, or $(0.02) per diluted share, in the prior-year period, with the current-year net loss driven by a non-cash goodwill impairment charge related primarily to the acquisition of the former 3M Food Safety Division. Adjusted Net Income was $24.4 million, compared to $24.9 million in the prior-year period. The slight decline in Adjusted Net Income was driven primarily by the lower level of operating income, mostly offset by a more favorable effective tax rate. Gross margin was 49.0% in the second quarter of fiscal 2025. This compares to a gross margin of 50.9% in the same quarter a year ago, with the decrease mainly due to restructuring costs. Second-quarter Adjusted EBITDA was $51.4 million, representing an Adjusted EBITDA Margin of 22.2%, compared to $55.1 million and a margin of 24.0% in the prior-year period. The decline in Adjusted EBITDA Margin was driven primarily by the full cost to exit the various transition service agreements that had been in place, including higher distribution costs.

NEOG in the second quarter of FY 25 has reported the adjusted earnings per share of 11 cents, beating the analysts’ estimates for the adjusted loss per share of 1 cent. The company had reported the adjusted revenue growth of 0.7 percent to $231.3 million in the second quarter of FY 25, beating the analysts’ estimates for revenue of $226.19 million.

Moreover, revenues for the Food Safety segment were $164.2 million in the second quarter, a decrease of 0.1% compared to $164.4 million in the prior year. Revenues for the Animal Safety segment were $67.0 million in the second quarter, an increase of 2.8% compared to $65.2 million in the prior year. The growth was led by the biosecurity and animal care & other product categories, particularly rodent control biologics and wound care products. On a global basis, the Company’s Genomics business experienced a core revenue decline in the mid-single-digit range. Increased sales in U.S. and international beef and dairy markets were offset by lower sales in the companion animal market.

Neogen sees FY 2025 revenue to be in the range of $905.00M-$925.00M versus the analyst consensus of $935.70M.