Q3 Earnings Expected to Decline for Darling Ingredients

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Darling Ingredients ($NYSE:DAR) Inc. is a global leader in sustainability and food ingredients, supplying a wide range of products to customers in the food, pet food, feed, pharmaceutical, fuel, and industrial sectors. The company’s recent financial report has predicted that their third quarter earnings are set to decline. This news has put investors on alert as they fear the potential impact this could have on the stock.

However, analysts now believe that this momentum may not be maintained in the third quarter. In order to mitigate the decline in earnings, Darling Ingredients has implemented a series of cost-cutting measures and other initiatives. Despite these efforts, analysts are still expecting earnings to be lower than expected. This news has caused the stock to dip slightly but overall it remains relatively steady. Investors will be closely monitoring the company’s progress over the next few weeks as they wait to see if Darling Ingredients can bounce back from this predicted downtrend.

Earnings

In the recently released earning report of Fiscal Year 2023 Q2 ending June 30 2021, DARLING INGREDIENTS reported total revenue of 1198.67M USD and 196.58M USD in net income. Unfortunately, this marks a 27.4% decrease in total revenue and a 2.7% decrease in net income compared to the same time last year. Despite the decline, total revenue has increased over the last 3 years from 1198.67M USD to 1757.62M USD. This indicates that DARLING INGREDIENTS is still growing even if their earnings have taken a hit this quarter.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Darling Ingredients. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Darling Ingredients. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Darling Ingredients. More…

Key Ratios Snapshot

Some of the financial key ratios for Darling Ingredients are shown below. More…

Share Price

Tuesday marked a volatile day for Darling Ingredients‘ stock as it opened at $44.2 and closed at $44.3, only 0.6% higher than its previous close of 44.0. This is concerning for shareholders, as Darling Ingredients has recently seen a decrease in profits due to increasing costs from its animal by-product recycling and biofuel businesses. Live Quote…

Analysis

GoodWhale’s analysis of DARLING INGREDIENTS‘ financials determined that the company is classified as a ‘gorilla’, meaning it has achieved stable and high revenue or earning growth due to its strong competitive advantage. This type of company could be interesting to growth investors, who are looking for highly profitable opportunities that show potential to continue generating returns. Notably, DARLING INGREDIENTS has a high health score of 8/10, indicating that the company is capable to safely ride out any crisis without the risk of bankruptcy. It is strong in growth, medium in profitability, and weak in asset and dividend, which means that investors should consider these factors before investing in the company. Overall, DARLING INGREDIENTS has a promising future and is a good choice for growth investors. Its strong competitive advantage, high health score, and solid performance in growth and profitability give it a strong potential for future success. More…

Peers

The company produces a variety of ingredients for the food, beverage, and animal feed industries. Darling Ingredients Inc has a number of competitors, including Guilin Seamild Foods Co Ltd, Kore Foods Ltd, and Slantcho AD.

– Guilin Seamild Foods Co Ltd ($SZSE:002956)

Guilin Seamild Foods Co Ltd is a market leader in the production of rice-based food products in China. The company has a strong market presence in the domestic market and is also expanding its operations in the international market. The company has a market capitalization of 2.95 billion as of 2022 and a return on equity of 4.39%. The company is engaged in the production of a wide range of rice-based food products, including rice noodles, rice cakes, and rice crackers. The company has a strong research and development team that is constantly innovating new products to meet the changing needs of the market. The company is well-positioned to continue its growth in the future.

– Kore Foods Ltd ($BSE:500458)

Kore Foods Ltd is a food company that produces and sells food products. The company has a market cap of 156.58M as of 2022 and a Return on Equity of -46.07%. Kore Foods Ltd’s products include processed meats, poultry, and seafood; and prepared meals. The company sells its products through supermarkets, hypermarkets, and convenience stores in the United Kingdom, the United States, Canada, Australia, New Zealand, and internationally.

Summary

Despite the challenging environment, DARLING INGREDIENTS remains well-positioned in its core markets and has been able to sustain profitability during the crisis. The company is expected to benefit from rising demand for plant-based proteins and its leading position in fat-based ingredients. Investors should also keep an eye on its new product launches and cost reduction initiatives, which could further enhance its competitive position. Traders should consider DARLING INGREDIENTS’ long-term growth potential, as the company is well-positioned to continue expanding and capitalize on industry trends.