Sunday, May 5, 2013

Will These Numbers from Darling International Be Good Enough for You?

Darling International (NYSE: DAR  ) is expected to report Q1 earnings around May 7. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Darling International's revenues will grow 6.1% and EPS will grow 8.3%.

The average estimate for revenue is $410.8 million. On the bottom line, the average EPS estimate is $0.26.

Revenue details
Last quarter, Darling International reported revenue of $424.9 million. GAAP reported sales were 1.4% lower than the prior-year quarter's $430.9 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, EPS came in at $0.24. GAAP EPS of $0.24 for Q4 were 4.0% lower than the prior-year quarter's $0.25 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 26.1%, 80 basis points worse than the prior-year quarter. Operating margin was 11.6%, 210 basis points worse than the prior-year quarter. Net margin was 6.8%, much about the same as the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $1.69 billion. The average EPS estimate is $1.16.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,200 members out of 1,227 rating the stock outperform, and 27 members rating it underperform. Among 273 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 268 give Darling International a green thumbs-up, and five give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Darling International is outperform, with an average price target of $18.25.

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