Darling Ingredients' stock fell 5.25% during pre-market trading on Thursday, marking a significant decline despite the company reporting better-than-expected quarterly earnings.
The company reported first-quarter earnings of $0.83 per share, beating analyst estimates of $0.56 by a substantial 48.21%. However, quarterly sales of $1.551 billion narrowly missed the consensus estimate of $1.553 billion by 0.14%, which appears to be weighing on investor sentiment.
Adding to concerns, the company provided its outlook for the second quarter, forecasting Core Ingredients Adjusted EBITDA of approximately $260-275 million. While the company reported strong year-over-year sales growth of 12.39% and net income of $134.3 million, the slight sales miss combined with what investors may view as a conservative forward outlook appears to be driving the pre-market selloff.