Darling Ingredients Inc (NYSE:DAR) shares are trading lower on Thursday after the first-quarter FY25 earnings.
The company reported a first-quarter sales decline of 2.8% year-on-year to $1.38 billion, missing the analyst consensus estimate of $1.45 billion.
Adjusted EPS of the loss of 16 cents missed the consensus estimate of 40 cents.
Total costs and expenses decreased 2.9% to $1.32 billion. The operating income plunged 79% to $28.4 million with an operating margin of 2.1%.
Combined Adjusted EBITDA slumped 30% to $195.8 million. Darling repurchased about 1 million shares of its common stock during the quarter for $35 million.
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The company held $81.5 million in cash and equivalents as of March 29.
“While the biofuel environment continues to adjust, margins have started to improve. The positive narrative surrounding renewable fuels public policy is encouraging, which is also driving strong market demand for domestic fats,” said Chairman and CEO Randall C. Stuewe.
“We expect our core business to continue to perform well, generating cash and allowing us to continue to de-lever the balance sheet and opportunistically repurchase shares.”
Outlook: Darling anticipates the core business will generate approximately $950 million to $1 billion EBITDA in FY25.
The company reaffirmed guidance of $1.25 billion – $1.30 billion combined adjusted EBITDA.
Price Action: DAR shares traded higher by 0.61% at $30.50 at last check Thursday.
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