The Gory Details on Darling International's Double Miss
Darling International (NYS: DAR) reported earnings on May 10. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Darling International missed estimates on revenues and missed estimates on earnings per share.
Compared with the prior-year quarter, revenue contracted and GAAP earnings per share contracted significantly.
Margins dropped across the board.
Darling International reported revenue of $387.1 million. The seven analysts polled by S&P Capital IQ expected a top line of $410.7 million on the same basis. GAAP reported sales were 12% lower than the prior-year quarter's $439.9 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 $0.24. The seven earnings estimates compiled by S&P Capital IQ anticipated $0.30 per share. GAAP EPS of $0.24 for Q1 were 44% lower than the prior-year quarter's $0.43 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 28.6%, 290 basis points worse than the prior-year quarter. Operating margin was 13.6%, 640 basis points worse than the prior-year quarter. Net margin was 7.4%, 320 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $438.2 million. On the bottom line, the average EPS estimate is $0.36.
Next year's average estimate for revenue is $1.73 billion. The average EPS estimate is $1.37.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,099 members out of 1,126 rating the stock outperform, and 27 members rating it underperform. Among 262 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 257 give Darling International a green thumbs-up, and five 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 $19.56.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings. He is the co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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.
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