- Darling Ingredients reported second-quarter Adjusted EBITDA of $249.5 million, surpassing the estimate of $228.2 million.
- The company’s net sales for the quarter were $1.48 billion.
- Challenges were noted due to uncertainties regarding small refinery exemptions in the renewable fuel standard and delayed reactions from RIN pricing.
- As a result, the 2025 outlook for Combined Adjusted EBITDA has been adjusted to a range of $1.05 billion to $1.10 billion.
- There is an expectation of continued improvement in the third quarter, driven by strengthening fat prices in their core ingredients business.
- Analyst recommendations include 12 ‘buys’ and 1 ‘hold,’ with no ‘sell’ ratings.
A look at Darling Ingredients Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 1 | |
| Growth | 2 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 2.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Darling Ingredients has a positive long-term outlook with strong scores in Value, Momentum, and somewhat lower scores in Dividend, Growth, and Resilience. The company collects and recycles animal processing by-products and used cooking oil, providing valuable products for sale domestically and internationally. With a solid value score and positive momentum, Darling Ingredients may be poised for growth in the near future.
Darling Ingredients‘ high value score reflects its strong performance relative to its industry peers, indicating it may be undervalued. While the lower scores in Dividend, Growth, and Resilience suggest some areas for improvement, the overall outlook remains optimistic. As the company continues to expand its operations and product offerings, investors may find potential in the long-term growth prospects of Darling Ingredients.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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