Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of food service company Darling International
So what: When it comes to making analysts' estimates look foolish, Darling did an excellent job this quarter. Revenue was $439.9 million and easily passed estimates of $367.6 million, while earnings per share hit $0.43 -- well above the $0.29 "experts" predicted.
Now what: High finished-product prices helped the company beat estimates, and the Griffin Industries acquisition gave the company a boost. I would be a bit more excited if the company made a habit of beating estimates, but over the last four quarters the company has fallen short of expectations. Still, I like the stock trading at just 15 times 2011 estimates -- especially if finished product prices remain high.
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