Here’s Why Neogen Corporation (NEOG) Lowered Full-Year Revenue Guidance in Q1

Fred Alger Management, an investment management company, released its “Alger Small Cap Growth Fund” first quarter 2024 investor letter. A copy of the letter can be downloaded here. US equities rose in Q1 in anticipation of a soft landing. Corporate earnings added another boost to the soft-landing narrative. Class A shares of the fund outperformed the Russell 2000 Growth Index during the quarter. The consumer discretionary and consumer staples sectors contributed to the fund’s relative performance in the quarter, while information technology and industrials detracted from performance. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.

Alger Small Cap Growth Fund highlighted stocks like Neogen Corporation (NASDAQ:NEOG), in the first quarter 2024 investor letter. Neogen Corporation (NASDAQ:NEOG) engages in the development, manufacturing, and marketing of various products and services dedicated to food and animal safety. The one-month return of Neogen Corporation (NASDAQ:NEOG) was 30.41%, and its shares lost 14.05% of their value over the last 52 weeks. On June 6, 2024, Neogen Corporation (NASDAQ:NEOG) stock closed at $16.21 per share with a market capitalization of $3.511 billion.

Alger Small Cap Growth Fund stated the following regarding Neogen Corporation (NASDAQ:NEOG) in its first quarter 2024 investor letter:

"Neogen Corporation (NASDAQ:NEOG) develops, manufactures, and markets a diverse line of products dedicated to food and animal safety. Food safety products include diagnostic test kits and complementary products sold to food producers and processors to detect dangerous and/or unintended substances in human food and animal feed. Animal safety products include pharmaceuticals, rodenticides, disinfectants, vaccines, veterinary instruments, topicals, diagnostic products, and genomic testing services for the worldwide animal safety market. During the quarter, shares detracted from performance after the company reported fiscal second quarter results that missed analyst estimates. Specifically, company revenues came in below consensus due to slower than expected end market recovery and an unfavorable mix shift in the Genomics business unit. Consequently. management lowered their full year revenue guidance."

A research laboratory showing advanced diagnostic equipment used to protect public health.

Neogen Corporation (NASDAQ:NEOG) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 17 hedge fund portfolios held Neogen Corporation (NASDAQ:NEOG) at the end of the first quarter which was 17 in the previous quarter. Neogen Corporation’s (NASDAQ:NEOG) trailing 12 months revenue is $929.24 million and year over year quarterly revenue growth rate is 4.80%. Neogen Corporation’s (NASDAQ:NEOG) first-quarter revenues were $229 million, according to a recent earnings call. While we acknowledge the potential of Neogen Corporation (NASDAQ:NEOG) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

We previously discussed Shake Neogen Corporation (NASDAQ:NEOG) in another article, where we shared Baron Funds' views on the company.In addition, please check out our hedge fund investor letters Q1 2024 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.