Darling Ingredients earnings: what to look for from DAR

Sustainable ingredients producer Darling Ingredients (NYSE:DAR) will be announcing earnings results this Thursday before the bell. Here’s what investors should know.

Darling Ingredients beat analysts’ revenue expectations last quarter, reporting revenues of $1.72 billion, up 16.4% year on year. It was a mixed quarter for the company, with a beat of analysts’ EPS estimates but a significant miss of analysts’ EBITDA estimates.

Is Darling Ingredients a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, the market is expecting Darling Ingredients’s revenue to grow 15.4% year on year, improving from the 10% increase it recorded in the same quarter last year.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Darling Ingredients has missed Wall Street’s revenue estimates multiple times over the last two years.

Looking at Darling Ingredients’s peers in the consumer staples segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Vita Coco delivered year-on-year revenue growth of 33.7%, beating analysts’ expectations by 6.1%, and Coca-Cola reported revenues up 7.6%, topping estimates by 3.7%. Vita Coco traded down 11% following the results.

Read our full analysis of Vita Coco’s results here and Coca-Cola’s results here.

There has been positive sentiment among investors in the consumer staples segment, with share prices up 2.9% on average over the last month. Darling Ingredients is down 8.8% during the same time and is heading into earnings with an average analyst price target of $81.83 (compared to the current share price of $55.25).

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