Darling Ingredients uvedla, že krátkodobě vidí u svých DGD aktiv udržitelné marže díky silnému RVO a konstruktivní nabídce a poptávce po RINs. Výhled považuje za velmi pozitivní.
Darling Ingredients Inc. (DAR) Barclays 40th Annual Energy-Power Conference September 9, 2026 1:45 PM EDT
Company Participants
Randall Stuewe - Chairman & CEO
Robert Day - Executive VP & CFO
Conference Call Participants
Theresa Chen - Barclays Bank PLC, Research Division
Presentation
Theresa Chen
Barclays Bank PLC, Research Division
Good afternoon, everyone. Thank you so much for joining us. My name is Theresa Chen. I'm the midstream and refining analyst here at Barclays. It is my pleasure to introduce our next presenting company, Darling Ingredients. Joining me from Darling is Randy Stuewe, Chairman and CEO; and Bob Day, CFO.
Welcome.
Randall Stuewe
Chairman & CEO
Thank you.
Theresa Chen
Barclays Bank PLC, Research Division
Thank you very much for being here. This has been an interesting year for Darling to say the least. I would love to maybe start on the fuel side of things and ask about your near-term and medium-term margin outlook for the DGD assets. So given high RVOs out to 2027, limited renewable diesel imports and elevated petroleum fuel prices as a base case. How sustainable do you think the currently supportive margin backdrop is?
Question-and-Answer Session
Randall Stuewe
Chairman & CEO
Do you want to take it on to start. Okay. Yes. Thanks, Theresa. I think it is sustainable in the near term. We have a strong RVO, a strong mandate. That really provides a backdrop for solid margins. We see it today with the replacement margins in the industry. As you said, that RVO extends through 2027. There are still some details that need to be clarified. But as we go forward, we get more and more. Recently, we learned about small refinery exemptions for 2025. There's been sort of comments and suggestions about reallocations of those. But either way, the S&D balance for RINs is constructive and we think the margin outlook is quite positive.
Bank of New York Mellon Corp ve 2. čtvrtletí koupila 1 162 462 akcií společnosti Darling Ingredients za zhruba 63,5 milionu USD. Bank of New York Mellon Corp vlastnila přibližně 0,73 % společnosti Darling Ingredients.
Bank of New York Mellon Corp bought a new position in Darling Ingredients Inc. (NYSE:DAR – Free Report) in the 2nd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund bought 1,162,462 shares of the company’s stock, valued at approximately $63,494,000. Bank of New York Mellon Corp owned approximately 0.73% of Darling Ingredients as of its most recent SEC filing.
Other hedge funds also recently modified their holdings of the company. Danske Bank A S acquired a new position in Darling Ingredients during the third quarter worth $25,000. Allworth Financial LP boosted its stake in shares of Darling Ingredients by 227.2% during the 4th quarter. Allworth Financial LP now owns 733 shares of the company’s stock worth $26,000 after acquiring an additional 509 shares in the last quarter. SJS Investment Consulting Inc. increased its holdings in shares of Darling Ingredients by 69.9% during the 1st quarter. SJS Investment Consulting Inc. now owns 423 shares of the company’s stock valued at $26,000 after acquiring an additional 174 shares during the last quarter. Litman Gregory Wealth Management LLC acquired a new position in shares of Darling Ingredients during the 4th quarter valued at about $29,000. Finally, Leonteq Securities AG bought a new position in shares of Darling Ingredients in the 4th quarter valued at approximately $35,000. Institutional investors and hedge funds own 94.44% of the company’s stock.
Analyst Upgrades and Downgrades DAR has been the subject of a number of recent analyst reports. Weiss Ratings raised Darling Ingredients from a “hold (c)” rating to a “hold (c+)” rating in a research report on Tuesday, August 11th. Barclays lifted their price target on shares of Darling Ingredients from $62.00 to $65.00 and gave the company an “equal weight” rating in a research report on Monday, August 3rd. Jefferies Financial Group upped their price objective on shares of Darling Ingredients from $73.00 to $75.00 and gave the stock a “buy” rating in a report on Monday, May 4th. Wall Street Zen upgraded shares of Darling Ingredients from a “buy” rating to a “strong-buy” rating in a research note on Saturday, August 15th. Finally, Zacks Research upgraded shares of Darling Ingredients from a “hold” rating to a “strong-buy” rating in a report on Wednesday, August 19th. One analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating and two have given a Hold rating to the company’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $69.00.
Read Our Latest Stock Analysis on Darling Ingredients Insider Transactions at Darling Ingredients In other news, EVP Nicholas James Kemphaus sold 1,591 shares of Darling Ingredients stock in a transaction that occurred on Monday, August 10th. The stock was sold at an average price of $63.05, for a total transaction of $100,312.55. Following the sale, the executive vice president owned 35,087 shares of the company’s stock, valued at approximately $2,212,235.35. This trade represents a 4.34% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CAO Joseph Manzi sold 1,000 shares of the company’s stock in a transaction on Tuesday, August 18th. The shares were sold at an average price of $67.27, for a total value of $67,270.00. Following the completion of the transaction, the chief accounting officer owned 18,969 shares of the company’s stock, valued at $1,276,044.63. The trade was a 5.01% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 10,591 shares of company stock worth $704,303. Insiders own 1.90% of the company’s stock.
Darling Ingredients Price Performance Shares of Darling Ingredients stock opened at $62.56 on Thursday. The company has a debt-to-equity ratio of 0.73, a current ratio of 1.56 and a quick ratio of 1.03. The company has a market cap of $9.87 billion, a PE ratio of 16.86 and a beta of 1.02. The firm has a fifty day moving average price of $60.31 and a two-hundred day moving average price of $58.68. Darling Ingredients Inc. has a fifty-two week low of $29.15 and a fifty-two week high of $69.98.
Darling Ingredients (NYSE:DAR – Get Free Report) last posted its quarterly earnings data on Thursday, July 30th. The company reported $2.41 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.40 by $1.01. The company had revenue of $1.72 billion for the quarter, compared to the consensus estimate of $1.71 billion. Darling Ingredients had a net margin of 9.13% and a return on equity of 12.98%. The business’s revenue was up 16.4% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.08 EPS. Analysts expect that Darling Ingredients Inc. will post 6.98 EPS for the current year.
Darling Ingredients Company Profile (Free Report)
Darling Ingredients Inc (NYSE: DAR) is a global leader in converting edible and inedible bio-nutrient streams into sustainable food, feed ingredients, renewable fuels and specialty products. Founded in 1882 and headquartered in Irving, Texas, the company builds on more than a century of experience in animal rendering and by-product recycling. Over time, Darling has expanded its capabilities beyond traditional rendering to include advanced processing technologies that support a circular economy and reduce waste from food and agricultural industries.
The company’s core operations revolve around four primary segments: Feed Ingredients & Services, Food & Nutrition, Fuel Ingredients & Services, and Specialty Ingredients.
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Darling Ingredients vykázala ve 2. čtvrtletí 2026 výrazné zlepšení zisku: upravená EBITDA v core ingredients vzrostla na 352,5 mil. USD z 206,9 mil. USD před rokem. EPS byl 2,41 USD, nad odhadem 1,45 USD.
Key Takeaways Darling Ingredients' core ingredients adjusted EBITDA rose to $352.5M in Q2 from $206.9M a year earlier.Darling's DGD adjusted EBITDA share jumped to $389.2M, with EBITDA per gallon sold rising to $2.23.DAR's 2026 earnings estimate rose 55.1% in four weeks, while capacity and higher costs remain key offsets. Shares of Darling Ingredients Inc. (DAR - Free Report) have gained 12.8% in the past week, putting the durability of the move in focus. The rally is backed by a sharp improvement in core ingredients profitability and much stronger renewable-fuel economics.
Estimate revisions have also moved decisively higher. The question now is whether Darling can sustain those earnings drivers as capacity constraints, higher costs and a weaker momentum signal create offsets.
DAR's Core Earnings Base Looks StrongerCore ingredients adjusted EBITDA climbed to $352.5 million in the second quarter of 2026 from $206.9 million a year earlier. Contract management, commercial optimization, price-risk management and operating efficiencies are helping Darling extract more earnings from its existing asset base.
Management expects third-quarter core ingredients adjusted EBITDA of $325-$340 million. Excluding the second-quarter tariff recovery in Food, that outlook implies underlying earnings generally consistent with the elevated second-quarter level, supporting the case for a more durable core earnings base.
Darling's DGD Economics Add Another Earnings LiftDarling's share of Diamond Green Diesel adjusted EBITDA surged to $389.2 million from $42.6 million a year earlier. EBITDA per gallon sold rose to $2.23 from 34 cents, helped by higher Renewable Identification Number values, diesel prices, production tax credits and about $50.5 million of tariff recovery at the DGD entity level.
Valero Energy Corporation (VLO - Free Report) , Darling's partner in Diamond Green Diesel, also has direct exposure to the venture's renewable-diesel economics. Bunge Global SA (BG - Free Report) is relevant on the feedstock side, with its renewable-fuels partnerships and oilseed processing network positioning it in the same policy-driven demand chain.
DAR's Estimate Revisions Support the RallyThe Zacks Consensus Estimate for 2026 earnings has risen 55.1% in the past four weeks and 53.6% over the past 12 weeks. That magnitude of upward revision gives the recent stock-price advance a clearer earnings foundation.
Darling reported second-quarter earnings of $2.41 per share, compared with 8 cents a year earlier, and topped the consensus mark of $1.45. Continued estimate support will depend on core-margin execution and renewable-fuel economics holding up through the balance of the year.
Darling Still Faces Capacity and Cost PressureFeed raw material processed remained at 3.1 million metric tons in the second quarter, unchanged from both a year earlier and the first quarter. Darling is out of rendering capacity in Brazil, while faster U.S. poultry line speeds could put additional pressure on its processing network.
Selling, general and administrative expenses rose to $151 million from $138.1 million a year earlier, while acquisition and integration costs increased to $13.2 million from $3.4 million. If commodity prices or DGD margins retreat, those costs could limit operating leverage and cash conversion.
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DAR's Ratings Mix Supports Cautious OptimismDAR's 12.8% weekly rally has a solid earnings foundation, but continuation is not assured. Stronger core earnings, favorable DGD economics and sharply higher estimates are constructive, while throughput constraints and a higher expense base leave less room for weaker pricing or renewable-fuel margins.
DAR currently carries a Zacks Rank #1 (Strong Buy). It also has a VGM Score of A, Growth Score of A and Value Score of B, while its Momentum Score of D is the weaker signal. The favorable Rank and broader Style Score mix support the earnings case, but the Momentum Score argues for a measured view after the rapid weekly advance. You can see the complete list of today’s Zacks #1 Rank stocks here.
Darling Ingredients uvedla, že nová politika pro obnovitelná paliva podporuje Diamond Green Diesel a marže mohou zůstat atraktivní až do roku 2027. Ve 2. čtvrtletí 2026 činil podíl DGD na upraveném EBITDA 389,2 mil. USD oproti 42,6 mil. USD.
Key Takeaways Darling Ingredients' share of DGD adjusted EBITDA jumped to $389.2 million in Q2 2026 from $42.6 million.DGD EBITDA per gallon sold rose to $2.23 from 34 cents as RIN values, diesel prices and tax credits improved.Management sees DGD margins through 2027 as attractive, but RINs, diesel and feedstock costs remain key. The finalized 2026-2027 Renewable Volume Obligation gives Darling Ingredients Inc. (DAR - Free Report) a supportive policy backdrop for Diamond Green Diesel ("DGD"). The mandate is intended to increase domestic feedstock demand and renewable-fuel production, conditions that have coincided with much stronger DGD economics.
The question is whether that support can carry through 2027. Recent results were unusually strong, but DGD still depends on Renewable Identification Number values, diesel pricing, feedstock costs and other market inputs.
DAR's DGD Earnings Jumped in the Second QuarterDarling's share of DGD adjusted EBITDA reached $389.2 million in the second quarter of 2026, up from $42.6 million a year earlier. Production increased to 355.9 million gallons, while EBITDA per gallon sold climbed to $2.23 from 34 cents.
The improvement gives DGD a much larger role in Darling's earnings profile. Valero Energy Corporation (VLO - Free Report) , Darling's 50/50 DGD partner, reports the venture within its Renewable Diesel segment and says DGD has about 1.2 billion gallons of annual production capacity.
Darling Sees RIN Tightness Supporting DGD MarginsManagement expects continued tightness in Renewable Identification Numbers (RINs) to remain supportive of renewable-fuel production and DGD margins. Higher RIN values, diesel prices and production tax credits all contributed to the second-quarter improvement.
Darling also believes the current Renewable Volume Obligation is appropriately sized when production increases, imports, small-refinery exemptions and normal deficit carryforwards are considered. Still, the company has said RINs need to remain supportive to keep incentivizing production and fulfill the mandate.
DAR's Production Outlook Keeps Scale in FocusDGD is expected to produce about 335 million gallons in the third quarter. Management views margins through 2027 as attractive under the current mandate, so maintaining high utilization remains an important part of the earnings opportunity.
Phillips 66 (PSX - Free Report) offers another renewable-fuels reference point. Its Rodeo Renewable Energy Complex has capacity of about 800 million gallons per year, and the company's second-quarter 2026 Renewable Fuels results benefited partly from higher regulatory credit pricing and renewable-fuels production.
Darling's DGD Upside Still Depends on Market InputsThe second quarter included about $50.5 million of favorable International Emergency Economic Powers Act tariff recovery at the DGD entity level. That benefit means the quarter should not be treated as a clean recurring run rate even though the underlying market environment improved substantially.
DGD profitability also remains exposed to renewable-fuel pricing, feedstock costs and broader market conditions. A softer RIN market, weaker diesel values or higher feedstock costs could narrow margins even if the policy framework continues supporting industry production.
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DAR's Ratings Back Growth but Flag MomentumPolicy support strengthens the DGD earnings case, but sustaining the second-quarter pace will require more than the Renewable Volume Obligation. RIN support, diesel values and feedstock economics need to remain favorable, while the tariff recovery makes the latest quarter an imperfect benchmark for future profitability.
DAR currently carries a Zacks Rank #1 (Strong Buy), along with a Growth Score of A, VGM Score of A and Value Score of B. Its Momentum Score of D is the weaker signal. The mix favors the earnings-growth and broader style case, but the momentum reading supports a measured view of near-term price timing. You can see the complete list of today’s Zacks #1 Rank stocks here.
Darling Ingredients oznámila dohodu o prodeji zhruba 150 milionů USD ve výrobních daňových kreditech. Kredity vznikly v rámci Diamond Green Diesel a výnos má být přijat do konce třetího čtvrtletí.
IRVING, Texas--(BUSINESS WIRE)--Darling Ingredients Inc. (NYSE: DAR) today announced an agreement to sell approximately $150 million of production tax credits to a corporate buyer. These credits were generated under the Inflation Reduction Act (IRA) by the company’s Diamond Green Diesel joint venture. The proceeds of the sale are scheduled to be received by the end of the third quarter, upon satisfaction of certain funding conditions.
About Diamond Green Diesel
Diamond Green Diesel (DGD) is a 50/50 joint venture between Darling Ingredients Inc. and Valero Energy Corporation. With capacity to produce more than 1.2 billion gallons annually, DGD is one of the world’s largest producers of renewable diesel and sustainable aviation fuel.
About Darling Ingredients
A pioneer in circularity, Darling Ingredients Inc. (NYSE: DAR) takes material from the animal agriculture and food industries, and transforms them into valuable ingredients that nourish people, feed animals and crops, and fuel the world with renewable energy. The company operates over 260 facilities in more than 15 countries and processes about 15% of the world’s animal agricultural by-products, produces about 30% of the world’s collagen (both gelatin and hydrolyzed collagen), and is one of the largest producers of renewable energy. To learn more, visit darlingii.com. Follow us on LinkedIn.
This release may contain “forward-looking statements,” which include information concerning the Company’s financial performance, plans, objectives, goals, strategies, future earnings, cash flow, performance and other information that is not historical information. When used in this release, the words “expects,” “anticipates,” “projects,” “plans,” “intends,” “believes,” “will” and variations of such words or similar expressions are intended to identify forward-looking statements. All forward-looking statements are based upon current expectations and beliefs and various assumptions. There can be no assurance that the Company will realize these expectations or that these beliefs will prove correct. There are a number of risks and uncertainties that could cause actual results to differ materially from the results expressed or implied by the forward-looking statements contained in this release. These include issues related to administration, guidance and/or regulations associated with biofuel policies, including the Section 45Z Clean Fuel Production Credit, and risks associated with the qualification and sales of such credits, including without limitation failure to satisfy closing conditions to complete such sales. Numerous other factors, many of which are beyond the Company’s control, could cause actual results to differ materially from those expressed as forward-looking statements. Other risk factors include those that are discussed in the Company’s filings with the Securities and Exchange Commission. Any forward-looking statement speaks only as of the date on which it is made, and the Company undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date on which it is made or to reflect the occurrence of anticipated or unanticipated events or circumstances.
Darling Ingredients Inc. (DAR) Q2 2026 Earnings Call July 30, 2026 9:00 AM EDT
Company Participants
Suann Guthrie - Senior Vice President of Investor Relations & Global Affairs
Randall Stuewe - Chairman & CEO
Robert Day - Executive VP & CFO
Conference Call Participants
Heather Jones - Heather Jones Research LLC
Manav Gupta - UBS Investment Bank, Research Division
Derrick Whitfield - Texas Capital Securities, Research Division
Andrew Strelzik - BMO Capital Markets Equity Research
Ben Kallo - Robert W. Baird & Co. Incorporated, Research Division
Conor Fitzpatrick - BofA Securities, Research Division
Matthew Blair - Tudor, Pickering, Holt & Co. Securities, LLC, Research Division
Jason Gabelman - TD Cowen, Research Division
Carla Casella - JPMorgan Chase & Co, Research Division
Presentation
Operator
Hello, everyone. Thank you for joining us, and welcome to the Darling Ingredients Inc. conference call to discuss the second quarter 2026 financial results. [Operator Instructions] I will now hand the conference over to Ms. Suann Guthrie, Senior Vice President of Investor Relations. Please go ahead.
Suann Guthrie
Senior Vice President of Investor Relations & Global Affairs
Thank you for joining the Darling Ingredients Second Quarter 2026 Earnings Call. Here with me today are Mr. Randall C. Stuewe, Chairman and Chief Executive Officer; and Mr. Bob Day, Chief Financial Officer. Our second quarter 2026 earnings news release and slide presentation are available on the Investor page of our corporate website, and it will be joined by a transcript of this call once it is available. You can also find reconciliations and disclosures with respect to non-GAAP financial measures in our earnings news release and slide presentation.
During this call, we'll be making forward-looking statements, which are predictions, projections or other statements about future events. These statements are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could materially differ because of factors discussed in
Darling Ingredients (DAR - Free Report) came out with quarterly earnings of $2.41 per share, beating the Zacks Consensus Estimate of $1.45 per share. This compares to earnings of $0.09 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +66.21%. A quarter ago, it was expected that this producer of natural ingredients from edible and inedible bionutrients would post earnings of $0.56 per share when it actually produced earnings of $0.83, delivering a surprise of +48.21%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Darling, which belongs to the Zacks Food - Miscellaneous industry, posted revenues of $1.72 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 4.45%. This compares to year-ago revenues of $1.48 billion. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Darling shares have added about 62.8% since the beginning of the year versus the S&P 500's gain of 6.9%.
What's Next for Darling?While Darling has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Darling was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.63 on $1.78 billion in revenues for the coming quarter and $5.34 on $6.94 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Food - Miscellaneous is currently in the bottom 14% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Flowers Foods (FLO - Free Report) , has yet to report results for the quarter ended June 2026.
This bakery goods company is expected to post quarterly earnings of $0.23 per share in its upcoming report, which represents a year-over-year change of -23.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Flowers Foods' revenues are expected to be $1.23 billion, down 1% from the year-ago quarter.
Darling Ingredients čeká za 2Q růst tržeb o 21,8 % na 1,8 miliardy USD a vyšší zisk díky dražším tukům a proteinům. Diamond Green Diesel má vyrobit asi 320 milionů galonů téměř na plnou kapacitu.
Key Takeaways Darling Ingredients' Q2 revenues are expected to rise 21.8% year over year to $1.8 billion. Higher fat and protein prices, strong poultry volumes and better product mix are set to support margins.Diamond Green Diesel is expected to produce about 320 million gallons near full capacity. Darling Ingredients Inc. (DAR - Free Report) is likely to witness a top-and bottom-line increase when it reports second-quarter 2026 earnings on July 30. The Zacks Consensus Estimate for revenues is pegged at $1.8 billion, suggesting growth of 21.8% from the year-ago period figure.
The consensus mark for earnings has risen from $1.28 to $1.45 over the past seven days, which implies substantial growth from 9 cents reported in the year-ago period. DAR has a trailing four-quarter surprise of 16.1%, on average.
Factors Likely to Influence DAR’s Upcoming ResultsDarling Ingredients’ second-quarter performance is likely to have benefited from a more favorable operating environment, improving commodity markets and continued operational execution across its global platform. Management expected earnings momentum to strengthen as 2026 progressed and projected core ingredients EBITDA of $260-$275 million for the quarter.
Higher fat and protein prices are expected to have supported revenues and margins, with the acceleration in North American fat prices beginning in March and expected to flow through during May and June. Strong poultry volumes, healthy global raw-material availability, improved product quality and sales into higher-value markets are likely to have provided additional support.
Growing collagen demand in Europe and Asia, broader applications across food, nutrition and health products, and favorable pricing and product mix are likely to have aided the Food business. Fuel results may also have increased sharply, as Diamond Green Diesel was expected to produce roughly 320 million gallons and operate near full capacity amid constructive renewable-diesel margins. Higher European energy prices may have supported non-DGD operations as well.
However, stagnant cattle supplies, commodity-price realization lags and early-quarter tariff-related pressure in Brazil may have limited some margin upside.
Earnings Whispers for DAROur proven model doesn’t conclusively predict an earnings beat for Darling Ingredients this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.
Darling Ingredients currently carries a Zacks Rank #3 and has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable CombinationHere are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
Archer-Daniels-Midland Company (ADM - Free Report) currently has an Earnings ESP of +11.52% and a Zacks Rank of 2. The consensus estimate for ADM’s quarterly revenues is pinned at $22.4 billion, which calls for 5.7% growth from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Archer-Daniels’ upcoming quarter’s EPS is pegged at $1.27, which implies a 36.6% rise year over year. ADM delivered a trailing four-quarter earnings surprise of 5.4%, on average.
Kimberly-Clark Corporation (KMB - Free Report) currently has an Earnings ESP of +1.43% and a Zacks Rank of 3. The Zacks Consensus Estimate for Kimberly-Clark’s upcoming quarterly revenues is pegged at $4.2 billion. The figure indicates a 1.7% increase from the prior-year quarter.
The Zacks Consensus Estimate for Kimberly-Clark’s quarterly earnings per share is pegged at $2.00, suggesting a 4.2% gain from the year-ago period figure. KMB delivered a trailing four-quarter earnings surprise of 19.1%, on average.
Monster Beverage Corporation (MNST - Free Report) currently has an Earnings ESP of +2.61% and a Zacks Rank of 3. The consensus estimate for Monster Beverage’s quarterly revenues is pinned at $2.4 billion, which implies 14.5% growth from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for the upcoming quarter’s EPS is pegged at 59 cents, which calls for a 13.5% jump year over year. MNST delivered a trailing four-quarter earnings surprise of 9.6%, on average.
DAR těží z růstu kolagenu a segmentu obnovitelných paliv. Ve 1. čtvrtletí 2026 vzrostly tržby Food na 405 milionů USD a upravená EBITDA na 81 milionů USD.
Key Takeaways DAR's Food sales rose to $405 million, while adjusted EBITDA increased to $81 million.The PB Leiner-Tessenderlo venture could add collagen capacity, pending antitrust clearance.Renewable fuel mandates may support DGD margins and low-carbon feedstock demand through 2027. Darling Ingredients Inc. (DAR - Free Report) is becoming less dependent on traditional rendering economics as collagen, specialty nutrition and renewable fuels take larger roles in its earnings mix.
The shift offers a better growth profile, but it also raises execution demands. Regulatory approvals, capital allocation and leverage control will determine how much of these trends converts into steadier cash flow.
Darling Expands Its Collagen Growth PlatformDarling’s Food Ingredients segment gives the company a higher-margin channel beyond feed and fuel markets. Its Rousselot and Gelnex brands supply collagen-based ingredients used in food, pharmaceutical, nutraceutical and pet-food applications.
Demand remains tied to nutrition, health and functional food trends. In the first quarter of 2026, Food segment sales rose to $405 million from $349 million a year earlier, while adjusted EBITDA improved to $81 million from $71 million.
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DAR Pursues Scale Through a Collagen VentureThe proposed PB Leiner-Tessenderlo joint venture is central to Darling’s next step in collagen. The transaction could add production capacity and support more efficient raw-material sourcing.
Management has said the venture remains in an antitrust review process. That makes regulatory clearance a key condition before Darling can fully capture the expected benefits of a larger global collagen platform.
Darling Builds New Specialty Nutrition OptionsDarling is also investing in the Nextida portfolio of science-based functional ingredients. This initiative moves the company further into health and nutrition applications that are less tied to commodity-oriented rendering markets.
Nextida gives Darling another path to build value from technical expertise rather than only raw-material availability. The company has discussed product development around glucose-control applications, positioning the portfolio as a longer-term specialty nutrition opportunity.
Darling currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
DAR Benefits From Renewable Fuel MandatesRenewable fuels remain a major earnings swing factor. The finalized 2026-2027 Renewable Volume Obligation created a more constructive operating backdrop for Diamond Green Diesel, Darling’s renewable diesel joint venture.
Management expects the industry to run hard through 2027 to meet mandated volumes. That backdrop could support renewable diesel and sustainable aviation fuel margins while increasing demand for low-carbon feedstocks.
Valero Energy Corporation (VLO - Free Report) , Darling’s partner in Diamond Green Diesel, remains a relevant comparison for investors watching renewable diesel economics. Its role in the joint venture links refining discipline with low-carbon fuel production.
Darling Captures Value Across the Supply ChainDarling’s integrated model is important because the company is exposed to both renewable-fuel production and feedstock supply. It can collect and process fats, used cooking oil and proteins, then direct those products to the highest-value markets.
That flexibility lets Darling benefit from policy-driven demand in more than one way. When renewable fuel economics improve, the company may gain through Diamond Green Diesel and through stronger demand for low-carbon inputs.
Bunge Global SA (BG - Free Report) also sits at the intersection of agricultural processing and biofuel-related demand. Bunge’s oilseed processing operations produce vegetable oils and protein meals for food, animal feed and biofuel markets, making it a useful sector reference for investors tracking feedstock economics.
DAR’s Trend Exposure Comes With Execution TestsThe bottom line is that DAR has attractive exposure to collagen growth and renewable fuel mandates, but those themes do not remove near-term risks. International volatility, regulatory review and elevated capital needs remain meaningful constraints.
Leverage also keeps the investment case balanced. Net debt was about $4 billion at the end of the first quarter of 2026, and management continues to target total debt of approximately $3 billion or less over time.
DAR carries a Neutral recommendation with a $66 price target. That view fits a company with improving long-term trend exposure but unresolved execution and balance-sheet questions.
No Zacks Rank or Style Scores are provided. Without those inputs, investors cannot make a report-grounded assessment of DAR’s value, growth or momentum factor profile and should focus instead on cash generation, leverage reduction and execution against the collagen and renewable-fuel opportunities.
DAR ve 1. čtvrtletí zvýšil tržby o 12,3 % na 1,6 miliardy USD a upravená EBITDA se více než zdvojnásobila na 406,8 milionu USD. Dluh 4,1 miliardy USD a slabší peněžní tok ale dál brzdí příběh o zotavení.
Key Takeaways DAR's sales rose 12.3%, while adjusted EBITDA more than doubled to $406.8 million. DAR trades below industry and market multiples, but near its own five-year median valuation. Debt of $4.1 billion and weaker cash flow leave leverage reduction dependent on stronger execution. Darling Ingredients Inc. (DAR - Free Report) has a better operating story after a sharp first-quarter recovery, but the case is mixed.
The shares combine stronger earnings, a discounted forward multiple and improving renewable-fuel conditions with elevated leverage and raw-material limits.
DAR’s Earnings Rebound Strengthens the Bull CaseDarling’s first-quarter results gave investors a clearer view of earnings power. Total net sales rose 12.3% year over year to $1.6 billion, and earnings were 83 cents per share, reversing a year-earlier loss.
Combined adjusted EBITDA more than doubled to $406.8 million from $195.8 million. Core ingredients execution, better finished-product pricing and a larger Diamond Green Diesel contribution all supported the rebound.
The recovery still needs context. The quarter included Darling’s share of a favorable lower-of-cost-or-market inventory adjustment of about $48.4 million at DGD, and management said that benefit has now been exhausted.
Darling currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Darling’s Valuation Offers a Relative DiscountDAR trades at 11.56X forward 12-month earnings. That is below 14.58X for its sub-industry, 17X for its sector and 20.41X for the S&P 500.
The discount supports the value argument, but it is not extreme versus the stock’s own history. DAR’s five-year median multiple is 11.92X, making the current valuation close to its normal range.
Valero Energy Corporation (VLO - Free Report) is relevant because it is Darling’s Diamond Green Diesel partner. Its renewable diesel exposure provides context for DGD margin swings.
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DAR’s Cash Flow Has Yet to Match EarningsCash flow did not keep pace with earnings. Operating cash flow was $153 million in the first quarter, down from $249 million in the prior-year period.
The gap reflects timing issues. Darling contributed $190.1 million to DGD, mainly for short-term working-capital needs tied to margin calls, while production-tax-credit receipts are expected in later quarters.
Management expects much or all of the temporary DGD funding to be returned. Until then, the earnings rebound has not fully converted into balance-sheet flexibility.
Darling’s Leverage Keeps the Risk ElevatedLeverage remains the main restraint on the bull case. Darling ended the first quarter with total debt of $4.1 billion, net debt of about $4 billion and a preliminary leverage ratio of 3.17 times.
Management continues to target total debt of approximately $3 billion or less. That objective depends on stronger operating cash flow, DGD distributions, production-tax-credit collections and planned asset-sale proceeds.
The path is achievable only if the improved earnings environment turns into cash. Accounting earnings alone would do less to reduce financial risk.
DAR Faces Supply and Cost ConstraintsRaw-material availability remains a structural issue. The North American cattle herd is at a multi-decade low, limiting access to beef-derived fats that can carry attractive renewable-fuel value.
Poultry volumes help offset supply pressure, but poultry yields less fat than beef. That limits upside when the best economics are tied to fats.
International markets add another risk. Tariff-related disruptions in Brazil, higher ocean freight costs and slower improvement in Europe could pressure margins if pricing or renewable-fuel economics soften.
Rising expenses also matter. Selling, general and administrative costs increased across segments in the first quarter, while corporate costs rose largely because of incentive compensation.
Bunge Global SA (BG - Free Report) provides a useful comparison because it operates across agricultural commodities, oils, proteins, animal feed and biofuel-related supply chains. Its exposure shows how broader agricultural processors also face commodity and logistics swings.
Darling’s Neutral View Reflects Balanced RisksThe bottom line is that DAR looks improved, but not risk-free. The Neutral view and $66 price target fit a stock with better earnings momentum, a relative valuation discount and a renewable-fuel recovery, offset by debt and cash-flow questions.
No Zacks Rank or Style Scores are provided, so investors cannot make a report-grounded assessment of DAR’s Value, Growth, Momentum or VGM classifications. That limits the ability to apply factor-based signals to the stock.
Without those classifications, the decision rests more on execution. DAR needs to hold core margins, convert earnings into cash and reduce leverage for the rebound to become a stronger investment case.
Darling Ingredients v 1. čtvrtletí 2026 zvýšila upravenou EBITDA na 255,6 mil. USD díky lepšímu provozu, nikoli vyšším objemům. EBITDA segmentu Feed Ingredients vyskočila o 52,5 % na 168,7 mil. USD a tržby v segmentu Food vzrostly o 16 % na 405,2 mil. USD.
Key Takeaways Darling Ingredients' core EBITDA rose as stronger execution offset flat processing volumes. DAR's Feed Ingredients EBITDA jumped 52.5% as gross margin expanded to 25.3% despite flat volume. Food sales rose 16%, while Diamond Green Diesel EBITDA recovered on stronger renewable diesel economics. Darling Ingredients Inc. (DAR - Free Report) is moving beyond its legacy identity as a traditional rendering company. Its platform now spans feed ingredients, collagen, gelatin, specialty nutrition, bioenergy and renewable fuels.
The investor question is whether better execution can make earnings more durable across commodity cycles. First-quarter 2026 results suggest the core business is becoming a stronger earnings engine, even as renewable fuels remain important to upside.
Darling’s Core Ingredients Engine Gains StrengthDarling’s core ingredients adjusted EBITDA rose to $255.6 million in the first quarter of 2026 from $189.7 million a year earlier. That improvement is notable because it did not depend on a major increase in processing volumes.
Management pointed to better throughput, lower costs, improved product quality and disciplined product placement. In other words, the earnings gain came from running the network more efficiently and directing products into higher-value markets.
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DAR’s Feed Margins Improve Without Volume GrowthFeed Ingredients was the clearest example of that execution story. Segment adjusted EBITDA increased 52.5% year over year to $168.7 million, while gross margin expanded to 25.3% from 20.3%.
Raw-material volume was flat at about 3.1 million metric tons, making the margin improvement more meaningful. The limitation is supply: tight North American cattle availability may restrict future volume-driven upside, even if poultry volumes remain supportive.
Darling’s Food Segment Adds StabilityFood Ingredients adds a steadier, higher-margin layer to Darling’s portfolio. The segment benefits from collagen, gelatin and specialty nutrition demand across food, health and nutraceutical applications.
First-quarter Food sales increased 16% year over year to $405.2 million, supported by healthy demand in Europe and Asia. The proposed PB Leiner-Tessenderlo joint venture could add capacity, improve sourcing flexibility and strengthen Darling’s global collagen position.
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DAR’s Fuel Exposure Regains MomentumDiamond Green Diesel also recovered sharply. Darling’s share of DGD adjusted EBITDA rose to $151.2 million in the first quarter of 2026, helped by stronger renewable diesel economics.
Finalized renewable-volume requirements could support high industry utilization and lift demand for low-carbon feedstocks. Valero Energy Corporation (VLO - Free Report) , Darling’s partner in Diamond Green Diesel, gives investors another way to track renewable diesel economics and refining-market exposure.
Darling’s Integrated Model Supports FlexibilityDarling’s advantage comes from its ability to collect, process and redirect fats, proteins and used cooking oil across markets. That flexibility lets it serve feed, food, fuel, pet food and international customers depending on relative value.
Bunge Global SA (BG - Free Report) provides useful sector context because it also operates in agricultural processing, oils, fats and protein ingredients. While Bunge’s model differs from Darling’s rendering-based platform, both companies are exposed to agricultural supply chains, commodity cycles and demand for low-carbon feedstocks.
Darling currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
DAR’s Neutral Signal Needs More ContextThe Neutral recommendation and $66 price target sit alongside a stronger operating thesis. The price target reflects 12.14X forward 12-month earnings, while the Neutral view implies expectations for market-like performance.
That signal should not be stretched beyond what it says. No Zacks Rank or Style Scores are disclosed here, so investors should avoid assigning unsupported ranking or factor conclusions. For now, the more useful focus is execution, cash flow conversion, debt reduction and whether core margin gains can hold through the next commodity cycle.
Darling Ingredients za čtvrtletí očekává zisk 1,45 USD na akcii a tržby 1,8 miliardy USD, což představuje meziroční růst o 1511,1 % a 21,8 %. Výsledky zveřejní 30. července.
Wall Street expects a year-over-year increase in earnings on higher revenues when Darling Ingredients (DAR - Free Report) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 30. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis producer of natural ingredients from edible and inedible bionutrients is expected to post quarterly earnings of $1.45 per share in its upcoming report, which represents a year-over-year change of +1511.1%.
Revenues are expected to be $1.8 billion, up 21.8% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 14.25% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Darling?For Darling, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that Darling will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Darling would post earnings of $0.56 per share when it actually produced earnings of $0.83, delivering a surprise of +48.21%.
Over the last four quarters, the company has beaten consensus EPS estimates two times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Darling doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Expected Results of an Industry PlayerAnother stock from the Zacks Food - Miscellaneous industry, Mondelez (MDLZ - Free Report) , is soon expected to post earnings of $0.67 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of -8.2%. Revenues for the quarter are expected to be $9.21 billion, up 2.5% from the year-ago quarter.
The consensus EPS estimate for Mondelez has been revised 6.8% lower over the last 30 days to the current level. However, a higher Most Accurate Estimate has resulted in an Earnings ESP of +0.97%.
When combined with a Zacks Rank of #3 (Hold), this Earnings ESP indicates that Mondelez will most likely beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
IRVING, Texas--(BUSINESS WIRE)--Darling Ingredients Inc. (NYSE: DAR) announced today that it will host a conference call on Thursday, July 30, 2026, at 9 a.m. Eastern Time (8 a.m. Central Time) to discuss second quarter 2026 financial results, which will be released earlier that day, and provide an update on company operations. A presentation with accompanying supplemental financial data will also be available at darlingii.com/investors.
To access the call as a listener, please register for the audio-only webcast.
To join the call as a participant to ask a question, please register in advance to receive a confirmation email with the dial-in number and PIN for immediate access on July 30 or call 833-461-5787 (United States) or 626-884-3620 (international) using access code 745365725.
A replay of the call will be available online via the webcast registration link two hours after the call ends. A transcript will be posted at darlingii.com/investors within 24 hours.
About Darling Ingredients
A pioneer in circularity, Darling Ingredients Inc. (NYSE: DAR) takes material from the animal agriculture and food industries, and transforms them into valuable ingredients that nourish people, feed animals and crops, and fuel the world with renewable energy. The company operates over 260 facilities in more than 15 countries and processes about 15% of the world’s animal agricultural by-products, produces about 30% of the world’s collagen (both gelatin and hydrolyzed collagen), and is one of the largest producers of renewable energy. To learn more, visit darlingii.com. Follow us on LinkedIn.
