Neogen fiscal Q1 earnings jump 13% on food safety business

Neogen ($NEOG) reported a fiscal first-quarter gain in net income of 13% due largely to stronger sales in its food safety segment.

Net earnings for the period ended Aug. 31 were $8.9 million, or 24 cents per share, compared to $7.8 million, or 21 cents per share, for the same quarter a year ago, the company said. Revenue for the Lansing, MI-based maker of diagnostic tests for food and animal pathogens climbed 15% to $67.6 million.

Gains in the company's revenue numbers were led by a 28% jump in sales in its Animal Safety division, as well as results derived from a number of acquisitions that began in 2013.

"We are very pleased to report these results, especially our net income performance, as we faced a difficult comparison with an especially strong first quarter of the previous fiscal year," James Herbert, chairman and CEO, said in a statement.

The company recently announced it entered into an agreement with Merck Animal Health ($MRK) to market Neogen's Igenity Dairy Heifer Program that uses genomic testing to help identify the potential of replacement dairy heifers.

- see the earnings release

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