Darling Ingredients Beats EPS Estimates

Core Insights - Darling Ingredients surpassed earnings expectations in Q4 2024 with an EPS of $0.63, significantly above the analysts' estimate of $0.42, but total revenue of $1.42 billion fell short of the consensus forecast of $1.449 billion and decreased from $1.61 billion in the prior-year period [2][3] Financial Performance - Q4 2024 metrics showed a diluted EPS of $0.63, a 21.2% increase from $0.52 in Q4 2023, while total revenue decreased by 12.2% from $1.61 billion to $1.42 billion [3] - Net income rose 20.7% year over year to $101.9 million, reflecting improved profitability in some segments despite overall revenue decline [6] - Combined adjusted EBITDA decreased by 17.5% to $289.5 million from $350.9 million in the prior-year period [3][8] Business Overview and Strategy - Darling Ingredients operates a diversified business model, transforming by-products from the food and agriculture sectors into value-added products, with a strategic focus on sustainability and renewable energy [4] - The company is expanding its geographical reach and focusing on strategic acquisitions in response to increasing global demand for sustainable products [5] Segment Performance - The feed ingredients segment saw a decline in net sales to $924.2 million from $1.046 billion in the prior-year period, while food ingredients sales dropped to $361.7 million from $423.8 million, partly due to softer demand in markets like China [7] - Fuel ingredients sales decreased to $131.9 million from $144.6 million, impacted by weaker pricing and uncertainties regarding renewable energy policies [7] Future Outlook - For 2025, Darling Ingredients anticipates an adjusted EBITDA of $1.25 billion to $1.30 billion, driven by expectations of higher fat prices and capacity growth through planned plant turnarounds and sustainable aviation fuel sales integration [10]