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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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool recommends Darling International. The Motley Fool owns shares of Darling International. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.