Food processor Darling Ingredients's Q2 net income falls
Overview
Darling Q2 net sales of $1,481 mln
Net income for Q2 declines due to lower earnings at Diamond Green Diesel
Co forms Nextida, a new collagen and gelatin joint venture
Outlook
Company anticipates improvement in Q3 led by strengthening fat prices
Darling Ingredients adjusts 2025 Combined Adjusted EBITDA outlook to $1.05-$1.10 bln
Company cites uncertainty from small refinery exemptions affecting 2025 outlook
Global tariffs present supply chain disruptions, company remains flexible
Result Drivers
DGD PERFORMANCE - Lower earnings at Diamond Green Diesel impacted net income, with 248.6 mln gallons sold at $0.36 per gallon EBITDA
MARKET DYNAMICS - Co cites improving market dynamics and supportive biofuel regulations as positive factors for renewables business
NEXTIDA LAUNCH - Formation of Nextida joint venture aims to expand collagen business in health and wellness markets
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Sales | $1.48 bln | $1.48 bln (9 Analysts) | |
Q2 EPS | $0.08 | ||
Q2 Net Income | $12.70 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the food processing peer group is "buy"
Wall Street's median 12-month price target for Darling Ingredients Inc is $47.00, about 21.6% above its July 23 closing price of $36.86
The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 12 three months ago
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