The 10-second takeaway
For the quarter ended March 31 (Q1), Darling International missed estimates on revenues and missed estimates on earnings per share.
Compared with the prior-year quarter, revenue contracted and GAAP earnings per share contracted significantly.
Margins dropped across the board.
Darling International reported revenue of $387.1 million. The seven analysts polled by S&P Capital IQ expected a top line of $410.7 million on the same basis. GAAP reported sales were 12% lower than the prior-year quarter's $439.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.24. The seven earnings estimates compiled by S&P Capital IQ anticipated $0.30 per share. GAAP EPS of $0.24 for Q1 were 44% lower than the prior-year quarter's $0.43 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 28.6%, 290 basis points worse than the prior-year quarter. Operating margin was 13.6%, 640 basis points worse than the prior-year quarter. Net margin was 7.4%, 320 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $438.2 million. On the bottom line, the average EPS estimate is $0.36.
Next year's average estimate for revenue is $1.73 billion. The average EPS estimate is $1.37.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,099 members out of 1,126 rating the stock outperform, and 27 members rating it underperform. Among 262 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 257 give Darling International a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Darling International is outperform, with an average price target of $19.56.
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