Darling Ingredients reports Q4 results for DGD joint venture

Reuters01-29
Darling Ingredients reports Q4 results for DGD joint venture

Overview

  • Darling Ingredients' Q4 net income for Diamond Green Diesel (DGD) JV was $55 mln

  • Company's share of DGD adjusted EBITDA was $58 mln for Q4

Outlook

  • Company anticipates ending the year with solid improvement over prior outlook

Result Drivers

  • INVENTORY ADJUSTMENTS - DGD faced a $24 mln unfavorable inventory valuation adjustment in Q4, but a $140 mln favorable adjustment over the fiscal year

  • RENEWABLE FUEL SALES - DGD sold 285.3 mln gallons of renewable fuels in Q4, contributing to its net income

  • TAX CREDIT IMPACT - Darling's share of DGD adjusted EBITDA included discounts on Section 45Z Production Tax Credits

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q4 DGD Net Income

$55 mln

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the food processing peer group is "buy"

  • Wall Street's median 12-month price target for Darling Ingredients Inc is $48.00, about 9% above its January 28 closing price of $44.02

  • The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release: ID:nBwccn67ya

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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