Core Insights - Darling Ingredients reported a significant decline in GAAP EPS to $0.08, missing the consensus estimate of $0.24, primarily due to weak profitability in its Diamond Green Diesel joint venture [1][5] - Revenue for the second quarter of fiscal 2025 was $1.5 billion, slightly above expectations, but profitability metrics indicated ongoing challenges [1][5] - The company lowered its full-year Combined Adjusted EBITDA guidance to $1.05–$1.10 billion, down from previous estimates of $1.25 to $1.3 billion, reflecting persistent headwinds in the renewable fuels market [1][11] Financial Performance - Q2 2025 EPS was $0.08, down 83.7% year-over-year from $0.49 in Q2 2024 [2] - Revenue increased by 2.7% year-over-year, from $1.46 billion in Q2 2024 to $1.5 billion in Q2 2025 [2] - Adjusted EBITDA for Q2 2025 was $249.5 million, an 8.8% decrease from $273.6 million in Q2 2024 [2][5] Business Overview and Strategy - Darling Ingredients specializes in converting animal by-products, used cooking oils, and food waste into value-added ingredients for various markets, operating over 260 facilities globally [3][4] - The company's strategy focuses on product diversification to reduce dependence on any single market, addressing sectors like agriculture, pharmaceuticals, and renewable energy [3][4] Segment Performance - The Feed Ingredients segment generated net sales of $936.5 million, contributing significantly to overall revenue, supported by strong fat prices [6][8] - The Food Ingredients segment reported net sales of $386.1 million, with a 1.9% increase year-over-year, and includes the launch of the Nextida joint venture targeting health and wellness markets [6][9] - The Fuel Ingredients segment, heavily impacted by the Diamond Green Diesel joint venture, recorded revenue of $158.8 million, with a significant decline in profitability due to regulatory uncertainties and market dislocations [6][10] Future Outlook - The company anticipates continued improvement in its core ingredients business, particularly in the Feed Ingredients segment, driven by strengthening fat prices [6][11] - Management emphasized the importance of maintaining balance sheet health and focusing on high-margin product categories, especially in food ingredients and collagen innovation [11][12] - Investors are expected to monitor operational metrics across segments, particularly for signs of margin improvement and the performance of the Nextida joint venture [12]

Core Insights - Darling Ingredients reported Q2 2025 revenue of $1.5 billion, slightly above analyst forecasts, but earnings per share fell sharply to $0.08, missing the consensus of $0.24, primarily due to weaker performance in its renewable fuels joint venture, Diamond Green Diesel [1][5][10] Financial Performance - Q2 2025 EPS (GAAP) was $0.08, down 83.7% year-over-year from $0.49 in Q2 2024 [2][5] - Revenue remained flat year-over-year, with a slight increase of 1.8% compared to Q2 2024 [5] - Combined adjusted EBITDA (non-GAAP) decreased by 8.8% to $249.5 million, driven by declining margins in renewable fuels [2][5] Business Overview - Darling Ingredients specializes in repurposing animal by-products and used cooking oil, producing essential ingredients for various industries, including food, pharmaceuticals, and renewable fuels [3] - The company operates 83 production facilities across five continents, serving a diverse customer base [3] Strategic Developments - Recent acquisitions, including Valley Proteins, Gelnex, and FASA Group, have aimed to enhance the company's portfolio in growth areas like specialty collagen peptides and renewable fuels [4] - A new joint venture, Nextida, was announced to develop the global collagen and gelatin business targeting the health and wellness market [9] Challenges and Guidance - The company revised its full-year FY2025 combined adjusted EBITDA guidance down to $1.05 to $1.10 billion from the previous forecast of $1.25 to $1.30 billion, reflecting uncertainties in U.S. renewable fuel policy and the need for improvement at DGD [10][11] - Key areas for investors to monitor include policy clarity, margin recovery at DGD, and the ramp-up of specialty collagen initiatives through the Nextida venture [12]

Core Insights - Darling Ingredients reported $1.48 billion in revenue for the quarter ended June 2025, marking a year-over-year increase of 1.8% and aligning with the Zacks Consensus Estimate, resulting in a surprise of +0.32% [1] - The company's EPS for the same period was $0.09, a significant decrease from $0.49 a year ago, leading to an EPS surprise of -25% compared to the consensus estimate of $0.12 [1] Revenue Breakdown - Net Sales from Feed Ingredients were $936.53 million, below the four-analyst average estimate of $997.05 million, reflecting a year-over-year change of +0.3% [4] - Net Sales from Fuel Ingredients reached $158.84 million, exceeding the average estimate of $138.21 million, with a year-over-year increase of +11.6% [4] - Net Sales from Food Ingredients amounted to $386.14 million, surpassing the average estimate of $366.46 million, showing a year-over-year change of +1.9% [4] EBITDA Analysis - Segment Adjusted EBITDA for Food Ingredients was $69.95 million, slightly above the average estimate of $68.51 million [4] - Segment Adjusted EBITDA for Feed Ingredients was $135.9 million, falling short of the average estimate of $161.84 million [4] - Segment Adjusted EBITDA for Fuel Ingredients was $18.64 million, compared to the average estimate of $19.79 million [4] - Segment Adjusted EBITDA for Corporate was reported at -$17.59 million, worse than the average estimate of -$10.3 million [4] - Combined Adjusted EBITDA for Fuel Ingredients was $61.29 million, significantly higher than the average estimate of $31.85 million [4] Stock Performance - Over the past month, shares of Darling have returned -1.2%, contrasting with the Zacks S&P 500 composite's +5.7% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - Combined adjusted EBITDA for Q2 2025 was $249.5 million, down from $273.6 million in Q2 2024, while year-to-date combined adjusted EBITDA totaled $445.3 million compared to $553.7 million for the same period in 2024 [13][14] - Total net sales in Q2 2025 were $1.48 billion, slightly up from $1.46 billion in Q2 2024, with raw material volume remaining nearly unchanged at approximately 3.74 million metric tons [14] - Gross margins improved to 23.3% in Q2 2025 from 22.5% in Q2 2024, with year-to-date gross margins at 23% compared to 21.9% in the first half of 2024 [14][17] Business Line Data and Key Metrics Changes Feed Ingredients Segment - Total net sales for Q2 2025 were $936.5 million, up from $934.1 million in Q2 2024, with gross margins improving to 22.9% from 21% [15][16] - Raw material volumes remained approximately 3.1 million metric tons for both quarters, with year-to-date volumes at roughly 6.2 million metric tons [16] Food Segment - Total sales for Q2 2025 were $386.1 million, compared to $378.8 million in Q2 2024, with gross margins unchanged at 26.9% [18] - Year-to-date gross margins improved to 28.1% from 25.3% in the same period a year ago [18] Fuel Segment - Darling's share of DGD EBITDA was approximately $42.6 million in Q2 2025, down from $76.6 million in Q2 2024, with year-to-date EBITDA at $48.7 million compared to $191.7 million in 2024 [19][20] - Overall fuel segment sales for Q2 2025 were $158.8 million, up from $142.3 million in Q2 2024 [20] Market Data and Key Metrics Changes - The renewable fuel environment remains challenging, with small refinery exemptions and delayed compliance enforcement impacting margins [11][12] - Tariff volatility and increased domestic oilseed crush have pressured protein prices, particularly in Asia, but rising fat prices are expected to support the Feed segment [8][10] Company Strategy and Development Direction - The company announced the formation of NexTata, a joint venture focused on health and wellness, aligning with its strategy to diversify into high-margin markets [6] - The company is focused on operational discipline and strategic timing to position itself for improved margins in the future [12][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the core ingredients platform, anticipating sequential improvement driven by rising fat prices [24] - The company expects full-year combined adjusted EBITDA in the range of $1.05 billion to $1.1 billion, reflecting optimism about market conditions [25] Other Important Information - The company successfully refinanced its Eurobond and replaced its revolving credit facility, enhancing financial flexibility [21][22] - Total debt net of cash decreased to $3.89 billion as of June 28, 2025, from $3.97 billion at the end of 2024, lowering the leverage ratio to 3.34 times [22] Q&A Session Summary Question: Discussion on policy benefits for domestic renewable diesel - Management highlighted the evolving domestic market and the expected drop in imported raw materials, benefiting U.S. fat pricing [28][30] Question: Outlook for LCFS prices - Management indicated a positive trend in carbon prices and anticipated potential increases, although exact estimates were challenging [34][35] Question: Impact of lower UCO pricing - Management explained the fluid dynamics of the UCO market and the lag effect in pricing, which impacted margins [39][41] Question: Opportunities for DGD outside California - Management confirmed significant exports to Europe and the UK, with growing demand for renewable diesel globally [50][51] Question: Expectations for SREs - Management expressed uncertainty regarding the timing and impact of SRE announcements, emphasizing the need for clarity in the market [53][56] Question: CapEx plans and capital discipline - Management committed to maintaining CapEx at $400 million or lower for the year, focusing on debt reduction [101]

Financial Data and Key Metrics Changes - Combined adjusted EBITDA for Q2 2025 was $249.5 million, down from $273.6 million in Q2 2024, while year-to-date combined adjusted EBITDA totaled $445.3 million compared to $553.7 million for the same period in 2024 [13][14] - Total net sales in Q2 2025 were $1.48 billion, slightly up from $1.46 billion in Q2 2024, with raw material volume remaining nearly unchanged at approximately 3.74 million metric tons [14] - Gross margins improved to 23.3% in Q2 2025 from 22.5% in Q2 2024, with year-to-date gross margins at 23% compared to 21.9% in the first half of 2024 [14][16] Business Line Data and Key Metrics Changes - In the Feed Ingredients segment, total net sales increased to $936.5 million in Q2 2025 from $934.1 million in Q2 2024, with gross margins improving to 22.9% from 21% [15][16] - The Food segment saw total sales rise to $386.1 million in Q2 2025 from $378.8 million in Q2 2024, with gross margins unchanged at 26.9% [17] - The Fuel segment's sales for Q2 2025 were $158.8 million, up from $142.3 million in Q2 2024, but the share of DGD EBITDA dropped to $42.6 million from $76.6 million year-over-year [19][20] Market Data and Key Metrics Changes - The regulatory environment has shown signs of improvement, particularly in the Feed segment, which is expected to enhance performance into 2026 [6] - Tariff volatility and increased domestic oilseed crush have pressured protein prices, especially in Asia, but rising fat prices are expected to support the Feed segment [7][11] - The renewable fuel environment remains challenging, with DGD facing near-term pressure but expected to benefit from policy support in the long term [11][12] Company Strategy and Development Direction - The company announced the formation of NexTata, a joint venture focused on health and wellness, aligning with its strategy to diversify into high-margin markets [6] - The company is focused on operational discipline and strategic timing to position itself for improved margins in the future [12] - The outlook for the core ingredients platform remains strong, with expectations for sequential improvement driven by rising fat prices [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the core ingredients business, anticipating a more constructive market environment ahead [24][25] - The company expects full-year combined adjusted EBITDA in the range of $1.05 billion to $1.1 billion, reflecting optimism about market recovery [26] - Management acknowledged challenges in the renewable fuel sector but highlighted the potential for margin recovery as policy rules clarify [12][24] Other Important Information - The company successfully refinanced its Eurobond and replaced its revolving credit facility, enhancing financial flexibility [21][22] - Total debt net of cash decreased to $3.89 billion as of June 28, 2025, from $3.97 billion at the end of 2024, lowering the leverage ratio to 3.34 times [22] - The effective tax rate for Q2 2025 was 22.2%, slightly above the federal statutory rate, with expectations for a full-year effective tax rate around 15% [23] Q&A Session Summary Question: Discussion on policy benefits for domestic renewable diesel - Management noted that evolving domestic markets are expected to reduce reliance on imported raw materials, benefiting U.S. fat pricing and production [28][30] Question: Outlook for LCFS prices - Management indicated that carbon prices are moving positively, with expectations for further increases in the coming years [34] Question: Impact of lower UCO pricing - Management explained that pricing dynamics in a rising market can lead to temporary impacts on margins, but they expect improvements as prices stabilize [37][41] Question: Opportunities for DGD outside California - Management confirmed that while California is a significant market, they also export renewable diesel to Europe and other states, with demand growing globally [48][50] Question: Expectations for SREs - Management expressed uncertainty regarding the timing and impact of SREs but indicated that they expect an announcement soon [51][55] Question: CapEx plans and capital allocation - Management emphasized a commitment to maintaining capital discipline, with plans to keep CapEx below $400 million for the year while focusing on debt reduction [102][104]

Financial Performance - Total Net Sales increased by 1.8% to $1,481.5 million in Q2 2025 compared to $1,455.3 million in Q2 2024[4] - Gross Margin increased by 5.8% to $345.9 million in Q2 2025 compared to $326.9 million in Q2 2024[4] - Net Income decreased significantly by 83.9% to $12.7 million in Q2 2025 compared to $78.9 million in Q2 2024[4] - EPS Diluted decreased by 83.7% to $0.08 in Q2 2025 compared to $0.49 in Q2 2024[4] - Total combined adjusted EBITDA decreased by 8.8% to $249.5 million in Q2 2025 compared to $273.6 million in Q2 2024[4] Segment Performance - Feed segment adjusted EBITDA increased by 11.3% to $135.9 million in Q2 2025 compared to $122.1 million in Q2 2024[4] - Food segment adjusted EBITDA decreased by 4.5% to $69.9 million in Q2 2025 compared to $73.2 million in Q2 2024[4] - Fuel segment adjusted EBITDA decreased by 29.1% to $61.3 million in Q2 2025 compared to $96.8 million in Q2 2024[4] Balance Sheet - Cash and cash equivalents were $95 million as of June 28, 2025, compared to $76 million as of December 28, 2024[5] - Total debt was $3,980 million as of June 28, 2025, compared to $4,042 million as of December 28, 2024[5]

Group 1: Earnings Performance - Darling Ingredients reported quarterly earnings of $0.09 per share, missing the Zacks Consensus Estimate of $0.12 per share, and down from $0.49 per share a year ago [1] - The earnings surprise was -25.00%, and the company previously reported a loss of $0.16 per share, resulting in a surprise of -180% [2] - Over the last four quarters, Darling has surpassed consensus EPS estimates only once [2] Group 2: Revenue Performance - The company posted revenues of $1.48 billion for the quarter ended June 2025, exceeding the Zacks Consensus Estimate by 0.32%, and up from $1.46 billion year-over-year [3] - Darling has topped consensus revenue estimates just once over the last four quarters [3] Group 3: Stock Performance and Outlook - Darling shares have increased approximately 9.4% since the beginning of the year, compared to the S&P 500's gain of 8.1% [4] - The current consensus EPS estimate for the upcoming quarter is $0.44 on revenues of $1.55 billion, and for the current fiscal year, it is $0.95 on revenues of $6.01 billion [8] Group 4: Industry Context - The Zacks Industry Rank for Food - Miscellaneous is currently in the bottom 32% of over 250 Zacks industries, indicating potential challenges for stock performance [9] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor decisions [6]

[Darling Ingredients Inc. Second Quarter 2025 Results](index=1&type=section&id=Darling%20Ingredients%20Inc.%20Second%20Quarter%202025%20Results) [Financial and Operational Highlights](index=1&type=section&id=Financial%20and%20Operational%20Highlights) Darling Ingredients reported a significant drop in Q2 2025 net income to $12.7 million, primarily due to lower DGD earnings, with net sales flat at $1.5 billion Q2 & H1 2025 Key Financial Metrics | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | **Net Sales** | $1.5 billion | $1.5 billion | $2.9 billion | $2.9 billion | | **Net Income/(Loss)** | $12.7 million | $78.9 million | ($13.5 million) | $160.0 million | | **Diluted EPS** | $0.08 | $0.49 | ($0.09) | $0.99 | | **Combined Adj. EBITDA** | $249.5 million | $273.6 million | $445.3 million | $553.7 million | - The company's 2025 outlook for Combined Adjusted EBITDA has been revised to **$1.05-$1.10 billion**, citing uncertainty around small refinery exemptions and its impact on RIN pricing[7](index=7&type=chunk) - Strategic initiatives in Q2 included a successful debt refinancing to lock in borrowing costs and the launch of Nextida, a new joint venture aimed at accelerating growth in the global collagen business for health and wellness markets[4](index=4&type=chunk) Financial Position as of June 28, 2025 | Metric | Value | | :--- | :--- | | Cash and cash equivalents | $95.0 million | | Total debt outstanding | $3.98 billion | | Revolver availability | $1.27 billion | | Preliminary Leverage Ratio | 3.34x | [Consolidated Financial Statements](index=2&type=section&id=Consolidated%20Financial%20Statements) Consolidated financial statements reveal a significant decline in Q2 and H1 2025 profitability, primarily due to reduced DGD equity income [Consolidated Statements of Operations](index=2&type=section&id=Consolidated%20Statements%20of%20Operations) Q2 2025 operating income fell to $75.9 million, driven by a sharp decrease in DGD equity income to $6.0 million Consolidated Statement of Operations Highlights (in thousands) | Account | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Total net sales | $1,481,518 | $1,455,292 | $2,862,112 | $2,875,591 | | Operating income | $75,868 | $148,502 | $104,268 | $285,671 | | Equity in net income of DGD | $6,000 | $44,197 | ($24,523) | $122,616 | | Net income/(loss) attributable to Darling | $12,661 | $78,866 | ($13,499) | $160,023 | [Balance Sheet Disclosures](index=7&type=section&id=Balance%20Sheet%20Disclosures) As of June 28, 2025, the company held $94.6 million in cash, with total debt at $3.98 billion and $1.27 billion revolver availability Key Balance Sheet Data (in thousands) | Account | June 28, 2025 | December 28, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $94,577 | $75,973 | | Property, plant and equipment, net | $2,786,827 | $2,713,669 | | Current portion of long-term debt | $51,637 | $133,020 | | Long-term debt, net of current portion | $3,928,689 | $3,908,978 | [Segment Performance](index=3&type=section&id=Segment%20Performance) Q2 2025 saw improved Feed Ingredients profitability, stable Food Ingredients, and a significant decline in Fuel Ingredients due to lower DGD contribution [Feed Ingredients](index=3&type=section&id=Feed%20Ingredients) Feed Ingredients segment reported a Q2 2025 Adjusted EBITDA increase to $135.9 million, despite relatively flat net sales Feed Ingredients Performance (in thousands) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Total net sales | $936,532 | $934,147 | $1,832,815 | $1,823,995 | | Segment operating income | $39,900 | $68,734 | $60,911 | $113,223 | | Segment Adjusted EBITDA | $135,902 | $122,056 | $246,484 | $228,865 | [Food Ingredients](index=3&type=section&id=Food%20Ingredients) Food Ingredients segment's Q2 2025 Adjusted EBITDA slightly decreased to $69.9 million, with modest net sales increase Food Ingredients Performance (in thousands) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Total net sales | $386,142 | $378,841 | $735,382 | $770,123 | | Segment operating income | $42,555 | $45,828 | $83,925 | $78,647 | | Segment Adjusted EBITDA | $69,946 | $73,200 | $140,878 | $134,887 | [Fuel Ingredients](index=3&type=section&id=Fuel%20Ingredients) Fuel Ingredients' Q2 2025 Combined Adjusted EBITDA dropped significantly to $61.3 million due to lower DGD contribution Fuel Ingredients Performance (in thousands) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Total net sales | $158,844 | $142,304 | $293,915 | $281,473 | | Segment operating income/(loss) | $15,876 | $55,599 | ($5,045) | $143,435 | | DGD Adj. EBITDA (Darling's Share) | $42,648 | $76,642 | $48,683 | $191,702 | | **Combined Adjusted EBITDA** | **$61,287** | **$96,767** | **$85,513** | **$229,911** | [Diamond Green Diesel (DGD) Joint Venture Performance](index=8&type=section&id=Diamond%20Green%20Diesel%20(DGD)%20Joint%20Venture%20Performance) DGD joint venture experienced a sharp decline in Q2 2025 net income to $16.3 million, driving Darling's overall earnings decrease DGD Operational Metrics | Metric | Q2 2025 | YTD 2025 | | :--- | :--- | :--- | | Renewable Fuel Sold (million gallons) | 248.6 | 467.8 | | Average EBITDA per gallon | $0.36 | $0.22 | [DGD Statement of Operations](index=8&type=section&id=DGD%20Statement%20of%20Operations) DGD's Q2 2025 operating revenues decreased to $1.10 billion, with Adjusted EBITDA falling to $89.6 million DGD Statement of Operations Highlights (in thousands) | Account | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Operating revenues | $1,097,831 | $1,184,076 | $1,997,740 | $2,595,191 | | Operating income/(loss) | $28,102 | $91,373 | ($25,563) | $256,204 | | Net income/(loss) | $16,334 | $88,394 | ($42,974) | $245,232 | | DGD Adjusted EBITDA | $89,631 | $153,283 | $103,438 | $383,404 | [DGD Balance Sheet](index=9&type=section&id=DGD%20Balance%20Sheet) As of June 30, 2025, DGD had total assets of $5.38 billion, total debt of $822 million, and cash decreased to $163.8 million DGD Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash | $163,846 | $353,446 | | Total assets | $5,384,440 | $5,460,517 | | Total long term debt (incl. current) | $722,232 | $736,967 | | Total members' equity | $4,279,107 | $4,386,667 | [Non-GAAP Reconciliations and Disclosures](index=10&type=section&id=Non-GAAP%20Reconciliations%20and%20Disclosures) This section details non-GAAP financial measures and cautionary statements regarding forward-looking information and significant risk factors - The company uses non-GAAP measures like Segment Adjusted EBITDA and Combined Adjusted EBITDA to evaluate operating performance by excluding items like depreciation, interest, taxes, and other non-recurring or non-cash charges[28](index=28&type=chunk)[32](index=32&type=chunk) - The report includes forward-looking statements that are not guarantees of future performance and are subject to numerous risks and uncertainties[37](index=37&type=chunk) - Key risk factors identified include: volatility in biofuel and commodity prices, changes in government regulations (e.g., renewable fuel standards), raw material availability, risks associated with the DGD joint venture, and international trade barriers[38](index=38&type=chunk)[39](index=39&type=chunk)

Core Viewpoint - Analysts expect Darling Ingredients (DAR) to report quarterly earnings of $0.09 per share, reflecting a significant year-over-year decline of 81.6%, while revenues are projected to be $1.48 billion, indicating a slight increase of 1.5% from the previous year [1]. Earnings Estimates - Over the past 30 days, there has been a 7% downward revision in the consensus EPS estimate for the quarter, indicating a collective reassessment by analysts of their initial forecasts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock price performance [3]. Revenue Projections - Analysts estimate that 'Net Sales- Feed Ingredients' will reach $997.05 million, representing a year-over-year increase of 6.7% [5]. - 'Net Sales- Fuel Ingredients' is projected to be $138.21 million, suggesting a decline of 2.9% year over year [5]. - 'Net Sales- Food Ingredients' is expected to be $366.46 million, indicating a decrease of 3.3% from the same quarter last year [5]. EBITDA Estimates - 'Segment Adjusted EBITDA- Food Ingredients' is anticipated to be $68.51 million, down from $73.20 million in the previous year [6]. - 'Segment Adjusted EBITDA- Feed Ingredients' is projected at $163.61 million, compared to $122.06 million reported in the same quarter last year [6]. - 'Segment Adjusted EBITDA- Fuel Ingredients' is expected to reach $19.79 million, slightly lower than the $20.13 million reported in the same quarter last year [7]. Stock Performance - Over the past month, shares of Darling have declined by 6.4%, contrasting with the Zacks S&P 500 composite's increase of 5.9% [7]. - Currently, DAR holds a Zacks Rank 3 (Hold), suggesting that its performance may align with the overall market in the near future [7].

Core Viewpoint - Darling Ingredients (DAR) has shown a significant price increase of 23.2% over the past four weeks, with a mean price target of $52.69 indicating a potential upside of 38.9% from the current price of $37.94 [1] Price Targets and Analyst Estimates - The mean estimate consists of 13 short-term price targets with a standard deviation of $18.88, suggesting variability in analyst predictions. The lowest estimate is $34.00 (10.4% decline), while the highest is $110.00 (189.9% increase) [2] - Analysts' price targets can often mislead investors, as empirical research indicates that these targets rarely reflect actual stock price movements [7][10] - A low standard deviation among price targets indicates a high degree of agreement among analysts regarding the stock's price direction, which can serve as a starting point for further research [9] Earnings Estimates and Analyst Sentiment - Analysts are optimistic about DAR's earnings prospects, as indicated by a strong consensus in revising EPS estimates higher, which correlates with potential stock price increases [11] - Over the last 30 days, the Zacks Consensus Estimate for the current year has increased by 1.4%, with one estimate moving higher and no negative revisions [12] - DAR holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates, suggesting a solid potential upside [13] Conclusion on Price Movement - While the consensus price target may not be a reliable indicator of the extent of DAR's potential gains, the implied direction of price movement appears to be a useful guide for investors [14]