Darling International Earnings: Here’s Why Investors Like These Results

Darling International Inc. (NYSE:DAR) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 6.44%.

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Darling International Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 12.5% to $0.27 in the quarter versus EPS of $0.24 in the year-earlier quarter.

Revenue: Rose 15.06% to $445.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Darling International Inc. reported adjusted EPS income of $0.27 per share. By that measure, the company beat the mean analyst estimate of $0.26. It beat the average revenue estimate of $414.91 million.

Quoting Management: Darling International Chairman and Chief Executive Officer Randall Stuewe said, “We are off to a good start in 2013 driven by improving fat values along with strong protein demand especially from our value added poultry ingredients. Rendering raw material volumes remained steady relative to fourth quarter of 2012 with a much anticipated slowdown in the beef sector being offset by improved volumes in poultry, pork and used cooking oil. The Bakery Segment delivered solid results in the first quarter of 2013 as compared to first quarter 2012 with higher volumes and resilient finished product prices.”

Key Stats (on next page)…

Revenue increased 4.82% from $424.92 million in the previous quarter. EPS increased 17.39% from $0.23 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.34 to a profit $0.28. For the current year, the average estimate has moved down from a profit of $1.32 to a profit of $1.16 over the last ninety days.

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