Benzinga | Jul 20, 2021 09:29AM EDT

Supply Chain Issues Hit Neogen's Q4 Margins, Earnings

* Neogen Corporation (NASDAQ:NEOG) reported a Q4 net income of $0.15 per share, missing a consensus estimate of $0.16

* Q4 Revenues increased 17% Y/Y to $127.4 million ahead of the analysts' estimate of $122.3 million.

* Gross margins decreased to 45.3% from 47.4% a year ago, attributable to higher supply chain costs and personnel costs.

* The operating margin also decreased from 18.3% in Q4 of 2020 to 15.9%.

* Revenues for the Food Safety segment were $64.1 million, +18% Y/Y. Organic growth for the segment was 12%, with Megazyme providing most of the acquisition revenue.

* The segment also benefitted as businesses rebound from the COVID-19 pandemic, with sales of natural toxin (10%) and allergen (19%) test kits increasing.

* The Animal Safety segment reported revenues of $63.3 million, up 16% Y/Y driven by solid growth in the veterinary instruments line (50%) and animal care line (51%) of antibiotics.

* Price Action: NEOG shares are down 0.8% at $43.87 during the premarket session on the last check Tuesday.