Darling Ingredients (DAR) Stock Falls Despite Earnings Beat
NEW YORK (TheStreet) -- Shares of Darling Ingredients (DAR) - Get Report were falling 7% to $16.02 on heavy trading volume Thursday despite the pet food ingredient and organic fertilizer producer's positive fourth quarter results.
Darling Ingredients reported earnings of 42 cents a share for the fourth quarter, above analysts' estimates of 21 cents a share for the quarter. Revenue grew 123.3% year over year to $1 billion for the quarter, beating analysts' estimates of $956.93 million.
The company said that its large increase in revenue for the fourth quarter is due to its recent acquisitions of VION and Rothsay.
"Our business continued to experience headwinds in fourth quarter 2014 from globally lower prices for our finished products and a stronger U.S. dollar," Chairman and CEO Randall Stuewe said. "The global price resetting appears to have stabilized with raw material values adjusting and prices for most proteins recovering to meet the increased demand in both the feed and pet food sectors."
About 7.9 million shares of Darling Ingredients were traded by 1:21 p.m. Thursday, about the company's average trading volume of about 2 million shares a day.
TheStreet Ratings team rates DARLING INGREDIENTS INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate DARLING INGREDIENTS INC (DAR) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and deteriorating net income."
You can view the full analysis from the report here: DAR Ratings Report