Darling International Earnings: Everything You Must Know Now

Darling International Inc. (NYSE:DAR) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

Darling International Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 29.03% to $0.22 in the quarter versus EPS of $0.31 in the year-earlier quarter.

Revenue: Decreased 2.99% to $423.6 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Darling International Inc. reported adjusted EPS income of $0.22 per share. By that measure, the company missed the mean analyst estimate of $0.26. It missed the average revenue estimate of $435.72 million.

Quoting Management: Darling International Inc. Chairman and Chief Executive Officer Randall Stuewe said, “Our second quarter performance remained solid when compared to first quarter 2013. Finished product prices declined as lower pet grade poultry meal selling prices along with a declining selling price of Cookie Meal® more than offset a slight improvement in our fats and greases selling prices when compared to our first quarter. Volumes trended lower in the second quarter for rendering materials while cooking oil volumes showed their normal seasonal improvement. Additionally, we commenced startup of our Diamond Green Diesel JV with Valero at the end of June. The plant is operating well and is now running at name plate capacity of 9,300 barrels per day of renewable diesel.”

Key Stats (on next page)…

Revenue decreased 4.9% from $445.42 million in the previous quarter. EPS decreased 18.52% from $0.27 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.33 to a profit $0.34. For the current year, the average estimate has moved up from a profit of $1.18 to a profit of $1.19 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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