Darling Ingredients's Earnings Outlook

Darling Ingredients DAR is gearing up to announce its quarterly earnings on Thursday, 2024-10-24. Here's a quick overview of what investors should know before the release.

Analysts are estimating that Darling Ingredients will report an earnings per share (EPS) of $0.61.

Darling Ingredients bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.

New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).

Earnings History Snapshot

The company's EPS beat by $0.04 in the last quarter, leading to a 1.79% drop in the share price on the following day.

Here's a look at Darling Ingredients's past performance and the resulting price change:

Market Performance of Darling Ingredients's Stock

Shares of Darling Ingredients were trading at $38.56 as of October 22. Over the last 52-week period, shares are down 7.66%. Given that these returns are generally negative, long-term shareholders are likely a little upset going into this earnings release.

Analyst Opinions on Darling Ingredients

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Darling Ingredients.

With 4 analyst ratings, Darling Ingredients has a consensus rating of Buy. The average one-year price target is $45.5, indicating a potential 18.0% upside.

Comparing Ratings with Competitors

This comparison focuses on the analyst ratings and average 1-year price targets of Ingredion, Limoneira and Arcadia Biosciences, three major players in the industry, shedding light on their relative performance expectations and market positioning.

• For Ingredion, analysts project an Outperform trajectory, with an average 1-year price target of $141.2, indicating a potential 266.18% upside.
• Limoneira is maintaining an Buy status according to analysts, with an average 1-year price target of $26.5, indicating a potential 31.28% downside.
• Arcadia Biosciences received a Buy consensus from analysts, with an average 1-year price target of $6.0, implying a potential 84.44% downside.

Peer Metrics Summary

Within the peer analysis summary, vital metrics for Ingredion, Limoneira and Arcadia Biosciences are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

Darling Ingredients ranks at the top for Gross Profit among its peers. It is in the middle for Revenue Growth. For Return on Equity, it is at the bottom.

Discovering Darling Ingredients: A Closer Look

Darling Ingredients Inc develops and manufactures sustainable ingredients for customers in the pharmaceutical, food, pet food, fuel, and fertilizer industries. It collects and transforms all aspects of animal by-product streams into ingredients, including gelatin, fats, proteins, pet food ingredients, fertilizers. Also, the company recovers and converts used cooking oil and bakery remnants into feed and fuel ingredients. Darling has three primary business segments which are feed ingredients contributing the majority of revenue, food ingredients, and fuel ingredients. It provides grease trap services for food businesses and sells various equipment for collecting and delivering cooking oil. The company derives the majority of its revenue from customers in North America.

Financial Milestones: Darling Ingredients's Journey

Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.

Decline in Revenue: Over the 3 months period, Darling Ingredients faced challenges, resulting in a decline of approximately -17.2% in revenue growth as of 30 June, 2024. This signifies a reduction in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Consumer Staples sector.

Net Margin: Darling Ingredients's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 5.42% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Darling Ingredients's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 1.74%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): Darling Ingredients's ROA stands out, surpassing industry averages. With an impressive ROA of 0.73%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: Darling Ingredients's debt-to-equity ratio surpasses industry norms, standing at 1.04. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

To track all earnings releases for Darling Ingredients visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.