The 10-second takeaway
For the quarter ended Dec. 29 (Q4), Darling International missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue contracted slightly. GAAP earnings per share shrank.
Gross margins dropped, operating margins dropped, net margins were steady.
Darling International notched revenue of $424.9 million. The eight analysts polled by S&P Capital IQ anticipated sales of $438.7 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 predicted $0.29 per share. GAAP EPS of $0.24 for Q4 were 4.0% lower than the prior-year quarter's $0.25 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 26.1%, 100 basis points worse than the prior-year quarter. Operating margin was 11.6%, 220 basis points worse than the prior-year quarter. Net margin was 6.8%, much about the same as the prior-year quarter.
Next quarter's average estimate for revenue is $405.1 million. On the bottom line, the average EPS estimate is $0.25.
Next year's average estimate for revenue is $1.74 billion. The average EPS estimate is $1.31.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,194 members out of 1,221 rating the stock outperform, and 27 members rating it underperform. Among 287 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 283 give Darling International a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Darling International is hold, with an average price target of $18.25.
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