Neogen Corporation (NASDAQ:NEOG) stock rose 0.96% (As on January 6, 11:19:05 AM UTC-4, Source: Google Finance) after the company beats the earnings expectations strongly for the second quarter of FY 23. Neogen registered Food Safety revenues of $161.3 million in the second quarter, reflecting 140.3% year-over-year growth, consisting of 6.3% core growth and 140.5% from acquisitions. Core growth was led by the Culture Media & Other category, where the company’s Petrifilm product line performed well. Animal Safety revenues in the fiscal second quarter were $68.7 million, up 8.4% year over year, consisting of 6.9% core growth and 2.4% from acquisitions. Core growth was led by NEOG’s portfolio of biosecurity products, driven largely by share gains in the animal protein market, sales of dairy hygiene products and new insect control products. Revenues from Neogen’s animal genomics business increased 7.9% on a year-over-year basis in the fiscal second quarter. International revenues increased 5.5% year over year or on a core basis, representing 50.3% of the overall sales of Neogen in the reported quarter. Neogen exited the fiscal second quarter with cash and investments of $276.3 million, down from $374.7 million at the end of the fiscal first quarter. The company had no debt on the balance sheet at the quarter-end.

Moreover,  Sales in the rodent control, insect control and disinfectant category came in strong. This was driven by share gains in the animal protein market and sales of dairy hygiene products, as well as new insect control product introductions. Revenues in the vet instrument and disposable category were up in the mid-single digits on a core basis. The upside was led by strong market demand and additional sales to a large retail customer. Moreover, worldwide core genomics revenues rose in the upper single digits on strong demand in the U.S., European and Australian beef markets. The expansion of the gross margin is an added advantage.

NEOG in the second quarter of FY 23 has reported the adjusted earnings per share of $1.15, beating the analysts’ estimates for the adjusted earnings per share by a stupendous 287.5%, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 76.2 percent to $230 million in the second quarter of FY 23, beating the analysts’ estimates for revenue by 0.9%. Neogen’s fiscal second-quarter gross profit increased 85.7% year over year to $112.5 million. The gross margin expanded 250 basis points to 48.9%. The company reported an operating loss of $7.7 million for the quarter under review compared to $12.5 million of operating profit in the year-ago period.