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What's in the Cards for Darling Ingredients in Q3 Earnings Release?

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Key Takeaways

  • Darling Ingredients' Q3 revenues are expected to rise nearly 14% to $1.8B, with EPS reaching $1.89.
  • Strong Feed demand, favorable pricing and rising collagen sales are likely to support DAR's Q3 results.
  • DGD shipped 314.9 million gallons of renewable fuels in Q3, while sales timing may shift gains to Q4.

Darling Ingredients Inc. (DAR - Free Report) is likely to witness top-and bottom-line growth when it reports third-quarter 2026 earnings on Oct. 29. The Zacks Consensus Estimate for revenues is pegged at $1.8 billion, indicating an almost 14% increase from the year-ago reported number. 

The consensus mark for earnings has risen 1.6% over the past 30 days to $1.89 a share, which suggests a substantial jump from the year-ago period’s EPS of 12 cents. DAR has a trailing four-quarter surprise of 38.9%, on average.

Darling Ingredients Inc. Price, Consensus and EPS Surprise

Darling Ingredients Inc. Price, Consensus and EPS Surprise

Darling Ingredients Inc. price-consensus-eps-surprise-chart | Darling Ingredients Inc. Quote

Factors Likely to Influence DAR’s Upcoming Results

Darling Ingredients’ Feed segment is likely to have benefited from sustained demand for fats and proteins. Robust biofuel-sector demand, tight global fishmeal supplies and increased U.S. poultry production may have supported favorable pricing. Contributions from the three Patense rendering facilities acquired in Brazil, alongside continued operational efficiencies, commercial optimization and disciplined contract management, are likely to have aided segment performance.

The Food segment is expected to have gained from growing collagen demand across food, nutrition and health applications in the United States, Europe and Asia. The company’s continued shift toward higher-margin collagen and targeted health ingredients, including Nextida, may have supported a favorable product mix and profitability.

The Fuel business is likely to have benefited from supportive renewable diesel market fundamentals and demand for low-carbon fuels. In its latest release dated Oct. 22, Darling disclosed that Diamond Green Diesel (“DGD”) shipped 314.9 million gallons of renewable fuels during the third quarter, generating adjusted EBITDA of $1.30 per gallon. Management also introduced fiscal 2026 combined adjusted EBITDA guidance of $2.2-$2.3 billion, citing strong core-business fundamentals and favorable momentum entering the fourth quarter.

However, summer weather-related operating challenges could have weighed on core operations. Management indicated that the timing of DGD renewable diesel sales and certain commercial activities could affect third-quarter results, with related benefits expected to materialize in the fourth quarter.

Earnings Whispers for DAR

Our 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 #2 and has an Earnings ESP of -10.05%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks With the Favorable Combination

Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.

Altria Group, Inc. (MO - Free Report) currently has an Earnings ESP of +0.26% and a Zacks Rank #2. The consensus estimate for quarterly revenues is pegged at $5.3 billion, which indicates an improvement of about 1% 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 Altria’s upcoming quarter’s EPS is pegged at $1.51, which calls for 4.1% growth from the figure reported in the prior-year quarter. MO delivered a trailing four-quarter earnings surprise of 1.3%, on average.

Sysco Corporation (SYY - Free Report) currently has an Earnings ESP of +2.58% and a Zacks Rank of 3. The consensus estimate for the quarterly revenues is pinned at $22.2 billion, which suggests 4.9% growth from the figure reported in the prior-year quarter. 

The Zacks Consensus Estimate for Sysco’s upcoming quarter’s EPS is pegged at $1.16, which calls for a 0.9% increase from the year-ago period’s figure. SYY delivered a trailing four-quarter earnings surprise of nearly 1%, on average.

Archer-Daniels-Midland Company (ADM - Free Report) currently has an Earnings ESP of +18.48% and a Zacks Rank of 3. The Zacks Consensus Estimate for its upcoming quarter’s revenues is pegged at $22.7 billion, suggesting 11.3% growth from the figure reported in the prior-year quarter. 

The consensus estimate for Archer-Daniels’ earnings is pegged at $1.44 per share, implying an increase of 56.5% from the year-ago quarter. ADM delivered a trailing four-quarter earnings surprise of 11.3%, on average. 

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