Darling Ingredients Inc (DAR)

Darling posted Q1 results materially below both HJR and consensus estimates, despite the bar moving progressively lower into the reporting period. The miss was driven by Feed and DGD ($0.06 vs HJR $0.30/gal). Despite the…

DAR is the most exposed name in our coverage to biofuel policy, as the vast majority of its earnings are derived from the sale of feedstocks or RD/SAF. Consequently, its Q1 results were negatively impacted…

Post the ongoing build in global crush capacity (U.S. most pronounced), biofuel policy and crush margins have become inextricably linked. Edible oil demand growth is relatively meager, while global livestock production expansion currently materially lags…

DAR posted solid 4Q results last week, ahead of HJR estimates, which were recently revised lower. The beat was largely driven by the Feed segment, while DGD disappointed reflecting an LCM adjustment (previously announced by…

If Trump’s threat to impose sweeping 25% tariffs on imports from Canada and Mexico February 1 comes to fruition, it would potentially be hugely impactful to our coverage and a discussion is justified. It bears…

Our agribusiness coverage has been roiled by a combination of global biofuel policy shifts/uncertainty, growing global soy surplus/tighter corn supply, ongoing trade shifts, and the long anticipated fallout from aggressive capacity expansion. These have resulted…

The imminent changeover in Administrations is of greater import for our coverage universe than many other sectors as it portends material changes on multiple fronts, including regulatory policy (food and biofuels) and tariffs. Many of…

In an early September WSJ Op-Ed, Robert F. Kennedy Jr. (RFK) laid out prospective policy ideas that warrant examination given his nomination to lead the Department of Health and Human Services (HHS) – his nomination…

DAR’s Q3 results disappointed materially relative to both HJR and consensus estimates. The Food segment and DGD drove the shortfall, reflecting weaker-than-expected pricing in the former. Regarding the DGD shortfall, we are not clear on…

Very elevated uncertainty is the overwhelming theme headed into Q3 earnings, whether that be related to biofuels policy (see our Ag Brief published yesterday), the Election or protein production. Below (cont’d pg 2) we offer…