Darling Ingredients Inc. Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now
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As you might know, Darling Ingredients Inc. (NYSE:DAR) last week released its latest quarterly, and things did not turn out so great for shareholders. Results showed a clear earnings miss, with US$1.4b revenue coming in 3.8% lower than what the analystsexpected. Statutory earnings per share (EPS) of US$0.11 missed the mark badly, arriving some 68% below what was expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Check out our latest analysis for Darling Ingredients
Taking into account the latest results, the most recent consensus for Darling Ingredients from ten analysts is for revenues of US$6.17b in 2025. If met, it would imply a satisfactory 4.4% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to bounce 93% to US$3.17. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$6.41b and earnings per share (EPS) of US$3.60 in 2025. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a real cut to earnings per share numbers.
Despite the cuts to forecast earnings, there was no real change to the US$51.70 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Darling Ingredients analyst has a price target of US$66.00 per share, while the most pessimistic values it at US$40.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Darling Ingredients' revenue growth is expected to slow, with the forecast 3.5% annualised growth rate until the end of 2025 being well below the historical 16% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 2.7% annually. So it's pretty clear that, while Darling Ingredients' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.