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What: Darling International
So what: Revenue for the third quarter was $168.7 million, and net income fell to $11.4 million, or $0.14 per share, both below expectations. After falling 10% to open the session, the stock recovered and is now trading higher.
Now what: I'm never excited about an earnings miss, and this is the fourth quarter in a row Darling International has missed estimates. The hot weather that affected material quality will improve, but I don't like the deteriorating profit at Darling, which recycles food waste. I'm staying away, especially after the rally later in the day.
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Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings, or follow his Motley Fool CAPS picks at TMFFlushDraw.
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