The 10-second takeaway
For the quarter ended Sep. 29 (Q3), Darling International beat slightly on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank slightly and GAAP earnings per share shrank.
Margins contracted across the board.
Darling International reported revenue of $452.7 million. The seven analysts polled by S&P Capital IQ looked for sales of $444.7 million on the same basis. GAAP reported sales were 0.7% lower than the prior-year quarter's $455.9 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 $0.31. The six earnings estimates compiled by S&P Capital IQ anticipated $0.31 per share. GAAP EPS of $0.31 for Q3 were 11% lower than the prior-year quarter's $0.35 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 27.6%, 70 basis points worse than the prior-year quarter. Operating margin was 14.5%, 190 basis points worse than the prior-year quarter. Net margin was 8.2%, 80 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $455.8 million. On the bottom line, the average EPS estimate is $0.34.
Next year's average estimate for revenue is $1.72 billion. The average EPS estimate is $1.20.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,159 members out of 1,188 rating the stock outperform, and 29 members rating it underperform. Among 271 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 266 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 $19.93.
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