The 10-second takeaway
For the quarter ended March 30 (Q1), Darling International beat expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. GAAP earnings per share increased.
Margins contracted across the board.
Darling International logged revenue of $445.4 million. The seven analysts polled by S&P Capital IQ predicted a top line of $415.2 million on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $387.1 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 $0.27. The seven earnings estimates compiled by S&P Capital IQ predicted $0.27 per share. GAAP EPS of $0.27 for Q1 were 13% higher than the prior-year quarter's $0.24 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%, 100 basis points worse than the prior-year quarter. Operating margin was 13.2%, 40 basis points worse than the prior-year quarter. Net margin was 7.3%, 10 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $431.9 million. On the bottom line, the average EPS estimate is $0.29.
Next year's average estimate for revenue is $1.70 billion. The average EPS estimate is $1.16.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,200 members out of 1,227 rating the stock outperform, and 27 members rating it underperform. Among 282 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 278 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 outperform, with an average price target of $18.25.
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