Lamb Weston (NYSE:LW) Announces Earnings Results

Lamb Weston (NYSE:LW) posted its quarterly earnings results on Friday. The specialty retailer reported $0.87 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.63 by $0.24, FiscalAI reports. Lamb Weston had a net margin of 4.61% and a return on equity of 23.77%. The company had revenue of $1.77 billion for the quarter, compared to analyst estimates of $1.70 billion. During the same period last year, the business posted $0.87 EPS. The business’s quarterly revenue was up 5.6% on a year-over-year basis. Lamb Weston updated its FY 2027 guidance to 2.950-3.250 EPS.

Here are the key takeaways from Lamb Weston’s conference call:

• Lamb Weston said fiscal 2026 marked a meaningful turnaround, with North America stabilizing and delivering six straight quarters of volume growth, while full-year North America EBITDA margin reached 26%.
• The company generated $537 million of free cash flow in fiscal 2026, cut capital expenditures to $410 million, and returned $321 million to shareholders through dividends and buybacks.
• Management reaffirmed its Focus to Win strategy and outlined a broader strategic review of international markets, including possible M&A, partnerships, divestitures, and sharper country-cluster priorities, with more details expected at an Investor Day in early calendar 2027.
• International results remained pressured by EMEA weakness, including competitive pricing pressure, slower demand, higher freight costs tied to Middle East disruption, and startup costs from the new Argentina plant.
• For fiscal 2027, Lamb Weston guided to flat to 1% sales growth and adjusted EPS of $2.95 to $3.25, with expectations that earnings will grow faster than sales as cost savings, lower potato costs, and higher utilization offset broader inflation.

Lamb Weston Trading Down 0.8%

NYSE LW traded down $0.41 on Friday, reaching $48.77. The company had a trading volume of 1,797,093 shares, compared to its average volume of 2,396,394. Lamb Weston has a 52 week low of $37.62 and a 52 week high of $67.07. The stock’s 50 day moving average is $44.62 and its 200-day moving average is $44.22. The company has a quick ratio of 0.69, a current ratio of 1.46 and a debt-to-equity ratio of 1.99. The stock has a market cap of $6.73 billion, a price-to-earnings ratio of 22.93, a PEG ratio of 6.37 and a beta of 0.47.

Key Lamb Weston News

Here are the key news stories impacting Lamb Weston this week:

• Positive Sentiment: Lamb Weston beat Wall Street estimates for both earnings and revenue in Q4, reporting $0.87 EPS versus $0.62 expected and $1.77 billion in revenue versus $1.70 billion expected. Article Title
• Positive Sentiment: The company raised optimism around its outlook by guiding FY2027 revenue to $6.6 billion-$6.7 billion, above the consensus estimate of about $6.4 billion.
• Positive Sentiment: Management cited volume growth in North America as a key driver of higher sales, which suggests core demand remains healthy. Article Title
• Neutral Sentiment: The company said cost inflation and geopolitical volatility continued to weigh on international sales, limiting the strength of the overall results. Article Title
• Neutral Sentiment: Technical momentum also improved after the stock crossed above its 200-day moving average, which some traders may view as a bullish signal. Article Title
• Negative Sentiment: FY2027 EPS guidance of 2.95-3.25 was slightly below the consensus estimate of 3.02, which may temper enthusiasm despite the stronger revenue outlook.

Wall Street Analyst Weigh In

A number of equities research analysts recently weighed in on the company. Weiss Ratings reissued a “sell (d+)” rating on shares of Lamb Weston in a research report on Wednesday, July 8th. Stephens began coverage on Lamb Weston in a research report on Wednesday, May 27th. They set an “equal weight” rating and a $46.00 price objective on the stock. Bank of America reduced their target price on Lamb Weston from $49.00 to $47.00 and set a “neutral” rating for the company in a research report on Thursday, April 2nd. JPMorgan Chase & Co. lifted their price objective on Lamb Weston from $43.00 to $48.00 and gave the company a “neutral” rating in a report on Thursday, July 9th. Finally, Stifel Nicolaus reduced their target price on shares of Lamb Weston from $50.00 to $45.00 and set a “hold” rating on the stock in a research note on Thursday, April 2nd. Three analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, Lamb Weston presently has a consensus rating of “Hold” and a consensus target price of $49.27.

Hedge Funds Weigh In On Lamb Weston

Institutional investors have recently modified their holdings of the stock. Price T Rowe Associates Inc. MD raised its stake in shares of Lamb Weston by 27.4% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 9,824,690 shares of the specialty retailer’s stock valued at $411,558,000 after purchasing an additional 2,111,874 shares during the period. Ion Asset Management Ltd. bought a new stake in shares of Lamb Weston during the 2nd quarter worth approximately $84,379,000. Marshall Wace LLP increased its holdings in Lamb Weston by 170.5% during the fourth quarter. Marshall Wace LLP now owns 1,022,143 shares of the specialty retailer’s stock worth $42,818,000 after buying an additional 644,334 shares during the last quarter. Bank of America Corp DE raised its position in Lamb Weston by 129.2% during the third quarter. Bank of America Corp DE now owns 1,089,110 shares of the specialty retailer’s stock worth $63,256,000 after acquiring an additional 613,829 shares in the last quarter. Finally, ION Fund Management Ltd bought a new stake in Lamb Weston during the fourth quarter worth $23,555,000. 89.56% of the stock is currently owned by institutional investors and hedge funds.

Lamb Weston Company Profile

Lamb Weston, traded on the NYSE under the symbol LW, is a leading global processor and supplier of frozen potato products. The company’s portfolio includes a variety of potato-based items such as French fries, potato wedges, hash browns and specialty cuts tailored to the foodservice and retail grocery channels. Lamb Weston serves quick-service restaurants, full-service operators, grocery chains and food distributors, offering customized product formats, packaging solutions and seasoning options to meet evolving customer demands.

Founded in 1950 and headquartered in Eagle, Idaho, Lamb Weston has grown from a regional processor into one of the world’s largest producers of frozen potato products.