Overview
Darling Ingredients' Q4 net income for Diamond Green Diesel (DGD) JV was $55 mln
Company's share of DGD adjusted EBITDA was $58 mln for Q4
Outlook
Company anticipates ending the year with solid improvement over prior outlook
Result Drivers
INVENTORY ADJUSTMENTS - DGD faced a $24 mln unfavorable inventory valuation adjustment in Q4, but a $140 mln favorable adjustment over the fiscal year
RENEWABLE FUEL SALES - DGD sold 285.3 mln gallons of renewable fuels in Q4, contributing to its net income
TAX CREDIT IMPACT - Darling's share of DGD adjusted EBITDA included discounts on Section 45Z Production Tax Credits
Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q4 DGD Net Income
$55 mln
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "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 $48.00, about 9% above its January 28 closing price of $44.02
The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 13 three months ago
Press Release: ID:nBwccn67ya
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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.)
