NEW YORK (TheStreet) -- Shares of Darling Ingredients (DAR - Get Report) were gaining 17.2% to $14.30 on heavy trading volume Friday after the sustainable natural ingredients producer reported its second quarter financial results and new buyback plan.
Darling Ingredients reported earnings of 13 cents a share for the second quarter, above analysts' estimates of 7 cents a share for the quarter. Revenue fell 14.9% year over year to $859.3 million for the quarter, below analysts' estimates of $891.77 million.
Feed ingredients revenue fell 14.9% from the year-ago quarter to $529.4 million, while food ingredients revenue fell 14.5% to $283.4 million and fuel ingredients fell 40% to $46.5 million.
The company also announced that its board authorized a share repurchase program for up to $100 million, depending on market conditions. The repurchases under the plan can occur over the next 24 months.
About 3.3 million shares of Darling Ingredients were traded by 10:23 a.m. Friday, above 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 compelling growth in net income, attractive valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including poor profit margins, generally higher debt management risk and a generally disappointing performance in the stock itself."
You can view the full analysis from the report here: DAR Ratings Report