Stock to Watch: Darling Ingredients Inc (NYSE:DAR)

The shares of Darling Ingredients Inc (NYSE:DAR) currently has mean rating of 1.56 while 5 analysts have recommended the shares as “BUY”, 3 recommended as “OUTPERFORM” and 1 recommended as “HOLD”. The rating score is on a scale of 1 to 5 where 1 stands for strong buy and 5 stands for sell.

The company’s mean estimate for sales for the current quarter ending Jun-16 is 869.30 million by 8 analysts. The means estimate of sales for the year ending Dec-16 is 3.43 billion by 8 analysts.

The mean price target for the shares of Darling Ingredients Inc (NYSE:DAR) is at 17.44 while the highest price target suggested by the analysts is 18.00 and low price target is 16.00. The mean price target is calculated keeping in view the consensus of 8 brokerage firms.

The average estimate of EPS for the current fiscal quarter for Darling Ingredients Inc (NYSE:DAR) stands at 0.18 while the EPS for the current year is fixed at 0.61 by 8 analysts.

The next one year’s EPS estimate is set at 0.81 by 7 analysts while a year ago the analysts suggested the company’s EPS at 0.61. The analysts also projected the company’s long-term growth at 3% for the upcoming five years.

In its latest quarter ended on 31^st March 2016, Darling Ingredients Inc (NYSE:DAR) reported earnings of $0.01. The posted earnings missed the analyst’s consensus by -$0.10 with the surprise factor of -90.90%. In the matter of earnings surprises, the term “Cockroach Effect” is often implied. Cockroach Effect is a market theory that suggests that when a company reveals bad news to the public, there may be many more related negative events that have yet to be revealed. In the case of earnings surprises, if a company is suggesting a negative earnings surprise it means there are more to come.

Darling Ingredients Inc. develops, produces, and sells natural ingredients from edible and inedible bio-nutrients worldwide. It operates in three segments: Feed Ingredients, Food Ingredients, and Fuel Ingredients. The company offers a range of ingredients and customized specialty solutions for customers in the pharmaceutical, food, pet food, feed, technical, fuel, bioenergy, and fertilizer industries. It collects and transforms various animal by-product streams into useable and specialty ingredients, such as gelatin, edible fats, feed-grade fats, animal proteins and meals, plasma, pet food ingredients, organic fertilizers, yellow grease, fuel feedstocks, green energy, natural casings, and hides. The company also recovers and converts used cooking oil and commercial bakery residuals into valuable feed and fuel ingredients. In addition, it provides grease trap services to food establishments; environmental services to food processors; and sells restaurant cooking oil delivery and collection equipment. The company was formerly known as Darling International Inc. and changed its name to Darling Ingredients Inc. in May 2014. Darling Ingredients Inc. was founded in 1882 and is headquartered in Irving, Texas.