Neogen Corporation's (NASDAQ:NEOG) Q3 FY22 sales increased 9.9% Y/Y to $128.2 million, missing the consensus of $129.99 million.

• Food Safety segment revenue reached $62.7 million, +7% (+4% on an organic basis). 
• Sales of the new AccuPoint Advanced NG handheld sanitation monitoring system drove a 16% increase in general sanitation product line sales. 
• The Soleris rapid general microbial testing product line recorded a 10% increase in equipment sales, and Listeria Right Now 60-minute test system sales recorded a rise of 13%.
• Related: 3M Agrees To Combine Food Safety Business With Neogen.
• Animal Safety segment sales increased 12% Y/Y to $65.5 million (+9% organically). 
• The growth was driven by solid sales of veterinary instruments, up 36% on market share gains and private label business. 
• Animal care products increased by 12%, with vitamin injectables and antibiotics growth.
• Gross margins were 44.8%, down from 46.1% a year ago. Ongoing supply chain issues and the current inflationary environment continued to impact raw material costs and freight expenses adversely.
• Additionally, a product mix shift toward Animal Safety products, which generally have lower gross margins, negatively impacted gross margins for the period.
• The Company reported adjusted EPS of $0.13 missing the consensus of $0.15.
• Price Action: NEOG shares are down 8.60% at $30.84 during the market session on the last check Thursday.