Darling Ingredients Q3 profit surges
Darling Ingredients Q3 profit surges
Overview
US animal by-products processor's Q3 net sales rose yr/yr, net income increased sharply
Combined adjusted EBITDA for Q3 more than doubled from prior year
Company reduced net debt by $420 mln and repurchased $75.9 mln in stock
Outlook
Company reaffirms 2026 Combined Adjusted EBITDA guidance of $2.2-$2.3 bln
Capital expenditures estimated at $450 mln for fiscal year 2026
Result Drivers
DIAMOND GREEN DIESEL - Co attributed strong cash flow and earnings to substantial cash distributions and higher equity income from Diamond Green Diesel joint venture
CORE BUSINESS PERFORMANCE - Co said its core business delivered "exceptional performance" in Q3, supporting higher net sales and cash flow
Company press release: ID:nBw1SZ0VGa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 EPS |
| $1.67 |
|
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 $80.00, about 43.7% above its October 27 closing price of $55.67
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 12 three months ago
Reuters Recommended Reads
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Oct 26 - Steelmaker Gerdau's profit rises 40% in Q3 on strong North America operations
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)