January 8, 2026
Finance

Neogen Leads Gains on Strong Q2 Earnings and Raised Guidance in a Mixed Market

Several major stocks including defense and biotechnology companies register significant share price increases amid upbeat earnings and strategic announcements

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Summary

On Thursday, U.S. stock markets displayed mixed movements, highlighted by a roughly 100-point rise in the Dow Jones index. Neogen Corporation spearheaded gains after surpassing second-quarter earnings expectations and elevating its sales forecast for fiscal year 2026. Concurrently, a cluster of prominent companies ranging from biotechnology to defense sectors experienced notable share price appreciation driven by positive clinical updates, contractual achievements, and anticipatory moves tied to government budget discussions.

Key Points

Neogen Corporation's Q2 adjusted earnings of $0.10 per share exceeded the expected $0.06, with revenue reaching $224.691 million, outperforming estimates, propelling its stock up 28% to $9.44.
Biotechnology firms Enliven Therapeutics and MoonLake Immunotherapeutics surged following positive clinical trial data and FDA feedback respectively, signifying progress in therapeutic development.
Defense sector stocks, including Lockheed Martin, Northrop Grumman, and Karman Holdings, advanced amid discussions of an increased U.S. military budget for 2027, generating optimism in defense equities.
Applied Digital Corp and Astronics Corp reported strong financial results and guidance, leading to significant stock price gains reflecting confidence in their growth prospects.

The U.S. stock market experienced a varied session on Thursday, with key indices showing mixed performances. The Dow Jones Industrial Average stood out with an advance of approximately 100 points, illustrating pockets of optimism amid broader uncertainty. Central to the day's momentum was Neogen Corporation (NASDAQ: NEOG), whose shares surged 28% to $9.44 after reporting superior financial results for its second quarter and boosting its fiscal year 2026 sales guidance beyond analyst predictions.

Neogen's adjusted earnings per share totaled $0.10, surpassing the anticipated $0.06 consensus. Additionally, the company's quarterly revenue reached $224.691 million, notably higher than the $207.846 million forecasted. These robust figures underscore Neogen's capacity to outpace market expectations and underscore optimism about its growth trajectory.

Apart from Neogen, multiple other significant stocks recorded gains during the trading session. Enliven Therapeutics Inc. (NASDAQ: ELVN) experienced a remarkable 52.5% jump to $23.60, following the release of initial data from its Phase 1b ENABLE clinical trial. The trial assesses ELVN-001 in patients with chronic myeloid leukemia who are relapsed, refractory, or intolerant to existing tyrosine kinase inhibitors, hinting at potential therapeutic advancements.

MoonLake Immunotherapeutics (NASDAQ: MLTX) climbed 32.6% to $14.98 after communicating favorable feedback from the U.S. Food and Drug Administration (FDA). The agency affirmed the potential to establish substantial evidence of effectiveness for treating hidradenitis suppurativa without necessitating additional clinical trials, a development likely to accelerate regulatory pathways.

Babcock & Wilcox Enterprises Inc. (NYSE: BW) shares rose sharply by 21.1% to $7.17. The boost followed the company's announcement that Siemens Energy will supply steam turbine generator sets for Applied Digital’s data center power project, signaling strategic partnerships in energy infrastructure projects.

Other companies demonstrating notable share price appreciation included HUYA Inc. – ADR (NYSE: HUYA), which gained 19.6% to $3.72, and Serve Robotics Inc. (NASDAQ: SERV), which increased 15.5% to $15.56. Applied Digital Corp (NASDAQ: APLD) also posted a significant gain of 14.7% to $33.93, attributable to second-quarter adjusted earnings and revenue surpassing estimates.

Further advancing in share price were Standard Biotools Inc. (NASDAQ: LAB) rising 13.7% to $1.46 after reporting preliminary fourth-quarter and full-year 2025 revenue results, as well as Ondas Holdings Inc. (NASDAQ: ONDS) up 13.6% to $13.83, and Kratos Defense & Security Solutions Inc. (NASDAQ: KTOS) escalating 12.8% to $103.21.

Satellite technology company Satellogic Inc. (NASDAQ: SATL) saw a 12.7% increase to $2.70 after announcing a significant, seven-figure monitoring agreement with a strategic client, reflecting growing commercial adoption of its services. Bloom Energy Corp (NYSE: BE) shares rose 11.3% to $120.20 while AeroVironment Inc. (NASDAQ: AVAV) added 10.8%, reaching $352.85.

A central highlight in aerospace and defense was Astronics Corporation (NASDAQ: ATRO), which gained 9.4% to $63.71. The company announced preliminary unaudited revenue figures for the fourth quarter along with the initiation of its revenue guidance for 2026, indicating positive outlook and financial visibility.

Defense contractors also experienced upward price movements: Northrop Grumman Corp (NYSE: NOC) climbed 8.8% to $627.62, and Lockheed Martin Corp (NYSE: LMT) advanced 7.4% to $533.88. Karman Holdings Inc (NYSE: KRMN) rose 8.7% to $99.67 after entering into an agreement to acquire Seemann Composites for $220 million. The broader defense sector's gains coincided with social media commentary from former President Donald Trump advocating an increase in the military budget from $1 trillion to $1.5 trillion for the 2027 fiscal year, potentially signaling heightened government defense expenditures ahead.

Additionally, Constellation Brands Inc. (NYSE: STZ) gained 7% to $150.51 after releasing third-quarter earnings that surpassed market expectations, further contributing to the day's overall positive market undertone.


This breadth of sector performance and corporate achievements underscore a dynamic trading day characterized by positive earnings surprises, regulatory advances in biotechnology, strategic acquisitions, and defense industry anticipation linked to potential federal budget expansions. Investors exhibited selective optimism across various market segments, as evidenced by the notable individual stock gains despite general market mixed results.

Risks
  • Financial performance projections are subject to change and may not fully materialize, potentially impacting investor sentiment and stock prices.
  • Regulatory outcomes, particularly for biotechnology companies relying on FDA approvals, involve inherent uncertainties that could delay or complicate market entry.
  • Defense budget adjustments are subject to political processes; proposed increases are not guaranteed and may affect defense sector valuations.
  • Acquisition agreements, such as Karman Holdings' purchase of Seemann Composites, carry integration and execution risks that could influence future performance.
Disclosure
Education only / not financial advice
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Ticker Sentiment
NEOG - positive ELVN - positive MLTX - positive BW - positive HUYA - positive
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