Lamb Weston (NYSE:LW – Get Free Report) released its quarterly earnings results on Tuesday. The specialty retailer reported $0.75 EPS for the quarter, topping the consensus estimate of $0.59 by $0.16, FiscalAI reports. Lamb Weston had a return on equity of 23.27% and a net margin of 3.85%.The firm had revenue of $1.67 billion for the quarter, compared to analyst estimates of $1.65 billion. During the same period in the previous year, the company posted $0.74 EPS. Lamb Weston’s revenue for the quarter was up .7% on a year-over-year basis. Lamb Weston updated its FY 2027 guidance to 3.050-3.350 EPS.
Here are the key takeaways from Lamb Weston’s conference call:
- Q1 results exceeded expectations, with net sales up 1% to $1.67 billion, adjusted EPS up 1% to $0.75, and adjusted EBITDA of $286 million. Management raised full-year fiscal 2027 guidance for net sales, adjusted EPS to $3.05–$3.35, and adjusted EBITDA to $1.125–$1.215 billion.
- North America delivered its seventh consecutive quarter of volume growth, with sales volume up 7% and adjusted EBITDA up 11%. Growth was supported by new customer wins, strong chicken-focused QSR exposure, improved customer service and innovation, while contract renewals are progressing with high retention.
- International performance remains below management’s long-term expectations, with segment sales down 8% and adjusted EBITDA falling to $27 million. Europe faces a crop expected to be 15%–20% smaller due to heat and drought, higher potato costs, softer restaurant traffic and continued competitive pricing pressure, although capacity closures may improve market balance.
- Management is accelerating cost and organizational initiatives, including zero-based budgeting, supply-chain savings, reduced management layers and plant-network rationalization. These actions are intended to offset roughly 100 basis points of additional non-potato inflation and improve margins, while allowing selective reinvestment in innovation and commercial capabilities.
Lamb Weston Stock Performance
Shares of NYSE LW opened at $48.02 on Thursday. The company has a debt-to-equity ratio of 1.98, a quick ratio of 0.74 and a current ratio of 1.45. The firm has a market cap of $6.60 billion, a price-to-earnings ratio of 26.24, a P/E/G ratio of 2.06 and a beta of 0.49. The business’s 50-day simple moving average is $49.88 and its 200-day simple moving average is $46.06. Lamb Weston has a 52 week low of $37.62 and a 52 week high of $67.07.
Lamb Weston Dividend Announcement
More Lamb Weston News
Here are the key news stories impacting Lamb Weston this week:
- Positive Sentiment: Earnings and sales exceeded expectations. Adjusted EPS was $0.75 versus the $0.59 consensus estimate, while revenue reached $1.67 billion, about $10 million above expectations. Lamb Weston rallies after cost-saving measures help the bottom line
- Positive Sentiment: Management raised fiscal 2027 guidance. The company now expects low-single-digit sales growth, adjusted EBITDA of $1.125 billion to $1.215 billion and adjusted EPS of $3.05 to $3.35, above the prior consensus estimate of $3.02. Lamb Weston Lifts Fiscal 2027 Outlook
- Positive Sentiment: North American performance was strong. North America sales increased 5.2% to $1.14 billion, with resilient restaurant demand and stable volumes supporting the quarter. Cost-saving initiatives also helped protect adjusted earnings. LW Q1 Earnings Beat Estimates on Higher North America Volume
- Positive Sentiment: JPMorgan raised its price target from $46 to $53, although it maintained a neutral rating. Lamb Weston also declared its regular $0.38 quarterly dividend, equivalent to a roughly 3.2% annual yield at the referenced price.
- Neutral Sentiment: Analyst views remain mixed. The higher target reflects improving execution, but the neutral rating indicates that investors may want further evidence that the turnaround can be sustained.
- Negative Sentiment: Underlying profitability remains pressured. Net income fell to $29.1 million from $64.3 million a year earlier, while international sales declined 8.0% and gross profit reportedly dropped 22.2%. These figures highlight continuing inflation, pricing and overseas-market challenges.
Analyst Upgrades and Downgrades
LW has been the topic of a number of research analyst reports. Barclays increased their price objective on shares of Lamb Weston from $50.00 to $56.00 and gave the company an “overweight” rating in a research note on Monday, July 27th. Stifel Nicolaus raised their price objective on shares of Lamb Weston from $45.00 to $52.00 and gave the company a “hold” rating in a research note on Monday, July 27th. Weiss Ratings raised Lamb Weston from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Tuesday, July 28th. Deutsche Bank Aktiengesellschaft restated a “hold” rating and set a $53.00 price target on shares of Lamb Weston in a report on Wednesday. Finally, TD Cowen upped their target price on Lamb Weston from $40.00 to $52.00 and gave the company a “hold” rating in a report on Tuesday, July 28th. Three investment analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the company. According to MarketBeat.com, the company has a consensus rating of “Hold” and a consensus price target of $53.18.
Check Out Our Latest Stock Analysis on Lamb Weston
Lamb Weston Company Profile
Lamb Weston Holdings, Inc (NYSE: LW) is a global producer and marketer of frozen potato products. The company supplies French fries, potato wedges, hash browns, potato rounds, mashed potatoes and other specialty potato products to restaurants, foodservice distributors, retailers and food manufacturers.
Its product portfolio includes conventional and specialty frozen potato offerings, as well as sweet potato products and appetizer items. Lamb Weston sells products under its Lamb Weston and Grown in Idaho brands, while also providing private-label products for retail and foodservice customers.
The company’s history dates to the 1950s, when it began producing frozen potato products in the Pacific Northwest.
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