Darling Ingredients Inc (DAR)

2024 has borne a striking resemblance to 2014/2015 – sharp contraction in cattle herd (bottomed in 2014, down 9% from 2007 peak), dropping feed costs, bird flu and supply challenges within the broiler industry. This…

DAR reported Q2 EBITDA modestly below HJR/consensus, but reaffirmed full-year guidance of $1.3-$1.4B; includes Q1 Gelnex inventory adjustment. Q4 should be higher than Q3, given the cadence in the fats market and the likelihood that…

Global ag is experiencing a hangover from the boom years of 2021 – 2023. Global supply is much looser, processing capacity continues to expand and the impact of the Russia-Ukraine war has been largely blunted. …

On a YTD basis, the DAR shares have fallen >25% as compared to a ~15% climb in the S&P, weighed upon by weak fats pricing and RD margins. They have fared better than Neste (down…

There have been notable shifts in the markets most relevant to our coverage over the past several weeks, and those markets have been particularly volatile reflecting, among other factors, the threat of a tighter global…

As expected, Darling reported weak Q1 results; management also provided full-year consolidated EBITDA guidance of $1.3-$1.4B. We have raised our 2024 and 2025 EBITDA estimates to $1.39B and $1.67B, respectively, from $1.385B and $1.65B. Notably,…

Earnings season for our coverage kicks off this week with Bunge and DAR. Excepting DAR and GPRE, we expect upside for the quarter, but more important is the outlook; for each company, there are challenges,…

Earnings season for our coverage kicks off tomorrow with Bunge and the fundamental backdrop for our agribusiness coverage seems to be more uncertain with many more crosscurrents than usual. Excepting DAR and GPRE, we expect…

The workshop is ongoing at present, but yesterday at noon ET, CARB published a slide deck to accompany the workshop hosted today (from noon to 7p ET). The rule is not yet definitive, but the…

As we noted in our industry notes published earlier today, we are not utilizing the typical rating system, but instead, are using a forced rank process. This note shows current ranking based upon Friday’s close.