IRVING, Texas - Darling Ingredients Inc. (NYSE:DAR) reported fourth quarter earnings that missed analyst expectations. Despite the miss shares are up 6.6% on Thursday.
The positive reaction suggests analysts view the guidance as conservative and are optimistic about Darling’s earnings potential in the coming year. The stock move indicates investors are focusing on the earnings beat and outlook rather than the revenue miss.
The analyst Derrick Whitfield of Texas Capital Securities said, "We view the Darling Ingredients Inc. (DAR; Buy) release as positive. The positives include: i)
margin improvement in each segment, ii) lower than expected quarterly capex, iii) successful SAF production startup, and iv) encouraging outlook on the 45Z legislation’s impact on waste fats. The only negative was lower than expected 2025 EBITDA guidance."
The sustainable ingredient company posted adjusted earnings per share of $0.63 for the quarter, slightly below the analyst consensus of $0.64. Revenue came in at $1.42 billion, missing estimates of $1.51 billion but down from $1.61 billion in the same quarter last year.
Despite the revenue miss, investors cheered Darling’s strong profitability and outlook. The company reported net income of $101.9 million for Q4, up from $84.5 million in the prior-year period.
"Darling Ingredients delivered its strongest quarter of the year, and delivered some notable milestones," said Randall C. Stuewe, Chairman and CEO. He highlighted the startup of a major sustainable aviation fuel unit in Texas and meaningful dividends from the company’s Diamond Green Diesel joint venture.
For the full year 2024, Darling reported net sales of $5.7 billion, down from $6.8 billion in 2023. Net income for the year was $278.9 million or $1.73 per diluted share.
Looking ahead, Darling provided 2025 guidance for combined adjusted EBITDA of $1.25 billion to $1.30 billion. Management expressed confidence in a stronger 2025, citing robust raw material volumes and expectations for higher fat prices.
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