On Tuesday, May 11, Darling Ingredients (NYSE:DAR) will release its latest earnings report. Decipher the announcement with Benzinga's help.
Net Income, Earnings, And Earnings Per Share
Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.
Earnings And Revenue
Analysts predict Darling Ingredients will report earnings of $0.64 per share on revenue of $1.03 billion. Darling Ingredients reported a per-share profit of $0.51 when it published results during the same quarter last year. Sales in that period totaled $852.84 million.
What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?
Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.
If the company were to report earnings in line when it publishes results Tuesday, earnings would be up 25.49%. Sales would be up 20.77% from the year-ago period. Here is how the company's reported EPS has stacked up against analyst estimates in the past:
|Quarter||Q4 2021||Q3 2020||Q2 2020||Q1 2020|
|Revenue Estimate||905.19 M||854.45 M||840.05 M||852.21 M|
|Revenue Actual||1.02 B||850.57 M||848.67 M||852.84 M|
Shares of Darling Ingredients were trading at $72.73 as of May 07. Over the last 52-week period, shares are up 247.71%. Given that these returns are generally positive, long-term shareholders should be content going into this earnings release.
Do not be surprised to see the stock move on comments made during its conference call. Darling Ingredients is scheduled to hold the call at 09:00:00 ET and can be accessed here.