Analysts are expecting the sustainable natural ingredients developer and producer to post a year over year decline in both earnings per share and revenue for the most recent quarter.
The Irving, TX-based company has been forecast by analysts surveyed by Thomson Reuters to report earnings of 4 cents per share on revenue of $841.20 million for the three month period ended in September.
Darling Ingredients reported earnings of 9 cents per diluted share on net sales of $955.8 million for the 2014 third quarter. Earnings per share for the 2014 third quarter had declined when compared to the same quarter in 2013, while revenue grew year over year.
Shares of Darling Ingredients closed down by 0.89% to $10 on Wednesday afternoon.
Separately, 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 reasonable valuation levels, good cash flow from operations and notable return on equity. 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 unimpressive growth in net income.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Net operating cash flow has significantly increased by 79.38% to $128.31 million when compared to the same quarter last year. In addition, DARLING INGREDIENTS INC has also vastly surpassed the industry average cash flow growth rate of -33.08%.
- DAR, with its decline in revenue, underperformed when compared the industry average of 3.3%. Since the same quarter one year prior, revenues fell by 16.7%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Food Products industry. The net income has significantly decreased by 90.6% when compared to the same quarter one year ago, falling from $32.76 million to $3.08 million.
- The gross profit margin for DARLING INGREDIENTS INC is rather low; currently it is at 22.23%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 0.35% significantly trails the industry average.
- You can view the full analysis from the report here: DAR
Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.