Zacks Investment Research downgraded
Darling International Inc.
) to a Zacks Rank #5 (Strong Sell) on Aug 29, 2013.
Why the Downgrade?
Darling International reported a disappointing second quarter
2013 financial results on Aug 8, 2013. The company's share price
since then has dropped by 2.3%. Net earnings per share in the
quarter fell 29.0% year over year to 22 cents and 18.5% below the
Zacks Consensus Estimate of 27 cents.
Revenue in the quarter was down 3.0% year over year due to lower
finished product prices for fats. Talking of expenses and
margins, total costs and expenses in the quarter increased 22.8%.
Slight decline in cost of sales and operating expenses were
offset by increases in SG&A expenses and depreciation and
Operating margin in the quarter was 12.0%, down 260 basis points
from 14.6% in the year-ago quarter.
Darling International has a negative earnings surprise average of
19.3%. Also, in the last 30 days, the Zacks Consensus Estimate
for the company has gone down by 5.2% to $1.09 for 2013 and has
declined 5.0% to $1.33 for 2014.
Other Stocks to Consider
Darling International is a well known provider of rendering and
bakery residuals recycling solutions to the nation's food
industry. The company currently has a market capitalization of
Other stocks to watch out for in the industry are
The Andersons, Inc.
Progressive Waste Solutions Ltd.
), each with a Zacks Rank #1 (Strong Buy) while
Sharps Compliance Corp.
) comes with a Zacks Rank #2 (Buy).
ANDERSONS INC (ANDE): Free Stock Analysis
PROGRESSV WASTE (BIN): Free Stock Analysis
DARLING INTL (DAR): Free Stock Analysis
SHARPS COMPLIAN (SMED): Free Stock Analysis
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