Darling Ingredients ( NYSE: DAR ) shares slipped in Monday’s extended trading after the company came up short of bottom line expectations for Q4.
For the fourth quarter, the company posted $0.96 in earnings per share on $1.77B in revenue. Analysts had anticipated $1.38 per share and $1.72B, respectively. Combined adjusted EBITDA for the fourth quarter 2022 was $413M as compared to $306.8M in Q4 2021, leading to record full-year EBITDA. Management credited the company’s host of acquisitions in 2022 for the rapid growth.
“For the fifth consecutive year, Darling Ingredients has delivered superior earnings growth driven by our market presence, vertical integration and diverse, but synergistic segments,” CEO Randall C. Stuewe said. “We are well positioned to execute and integrate the investments we have made in our four growth areas: the core rendering business, collagen peptides, green energy in Europe and soon sustainable aviation fuel at Diamond Green Diesel.”
He also highlighted the approval of a joint venture with Valero Energy for a sustainable aviation fuel project at its Port Arthur, Texas, plant. The company’s Diamond Green Diesel business sold a record 754M gallons of renewable diesel in 2022 and began operations at the Port Arthur plant in the fourth quarter of 2022
The company forecast between $1.8B and $1.85B in combined adjusted EBITDA for the full year ahead.
Shares of the Texas-based agricultural products company dropped as much as 5.63% in postmarket hours on Monday.
Read more on the forward-looking earnings expectations for the company .
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Darling Ingredients stock dips on profit miss