IRVING, Texas - Darling Ingredients Inc. (NYSE: NYSE:DAR) announced today that board member Michael E. Rescoe has retired. Rescoe, who has been part of the board since 2017 and previously from 2011 to 2014, has been recognized for his contributions to the company's growth and global expansion.
Randall C. Stuewe, Chairman and Chief Executive Officer of Darling Ingredients, expressed gratitude for Rescoe's years of service and acknowledged his role in the company's transformative journey. "Mike's significant and meaningful contributions to Darling Ingredients have helped transform our company," said Stuewe.
During his tenure, Rescoe's diverse experience in finance, energy, technology, development, and manufacturing was instrumental in guiding Darling Ingredients through significant expansion phases. His expertise supported the company's diverse business initiatives, which span across various industries.
Darling Ingredients, a leader in sustainability, specializes in converting animal agriculture and food industry by-products into valuable resources. The company operates over 260 facilities in more than 15 countries, processing approximately 15% of the world's animal agricultural by-products. It also produces about 30% of the global supply of collagen and is recognized as one of the largest producers of renewable energy.
The information in this article is based on a press release statement.
In other recent news, Darling Ingredients reported its second-quarter financial results, which showed an EBITDA of $274 million, closely aligning with market expectations of $277 million. The company's net income for the quarter was $78.9 million, with net sales totaling $1.5 billion. Despite weaker performance in the Food and Diamond Green Diesel segments, the firm's Feed EBITDA showed stronger results.
Following these earnings, BMO Capital Markets adjusted its outlook on Darling Ingredients, raising its price target to $55.00 from $54.00, and maintained an Outperform rating on the stock. The firm's analysis suggests potential for further upside, with the stock trading at only seven times BMO Capital's anticipated 2025 EBITDA.
Darling Ingredients confirmed its 2024 EBITDA outlook, which remains between $1.3 billion and $1.4 billion, expressing confidence in enhanced performance in the second half of the year. These internal initiatives and projections led to BMO Capital slightly increasing its estimates and the stock's price target.
The company also reported significant strides in debt repayment and stock repurchase, positioning itself for future growth and operational excellence. Darling Ingredients anticipates $1.3 billion to $1.4 billion in adjusted EBITDA for the full year and is on track for a Q4 2024 launch of its Sustainable Aviation Fuel unit.
InvestingPro Insights
As Darling Ingredients Inc. (NYSE: DAR) bids farewell to board member Michael E. Rescoe, the company's financial outlook remains a focal point for investors. According to recent data from InvestingPro, the company has a market capitalization of $6.14 billion, reflecting its significant presence in the sustainability and renewable energy sectors. Despite challenges in the market, Darling Ingredients boasts a strong Price/Earnings (P/E) ratio of 16.5, which slightly adjusts to 18.37 when considering the last twelve months as of Q2 2024.
While the company has been profitable over the last twelve months, with a Gross Profit Margin of 23.77%, InvestingPro Tips suggest a cautious approach moving forward. Analysts have revised their earnings downwards for the upcoming period and anticipate a sales decline in the current year. Moreover, net income is expected to drop this year, although the company is predicted to remain profitable.
Investors should note that Darling Ingredients does not pay a dividend to shareholders, which may influence investment strategies focused on income generation. For those interested in a deeper dive into the company's financial health and future prospects, there are additional InvestingPro Tips available. By using the coupon code PRONEWS24, investors can get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, providing access to valuable insights that could impact investment decisions.
As the company continues to navigate the complexities of the global market, staying informed with the latest data and expert analysis is crucial. Visit https://www.investing.com/pro/DAR for more InvestingPro Tips and to make the most of the exclusive discount offer.
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