Lamb Weston (NYSE:LW) Releases Quarterly Earnings Results, Beats Estimates By $0.16 EPS

Lamb Weston (NYSE:LW) issued its quarterly earnings data 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 23.33% and a net margin of 4.39%.The company had revenue of $1.67 billion during the quarter, compared to analyst estimates of $1.65 billion. During the same quarter in the previous year, the firm earned $0.74 earnings per share. Lamb Weston’s revenue 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

NYSE:LW opened at $47.85 on Wednesday. Lamb Weston has a 52-week low of $37.62 and a 52-week high of $67.07. The company has a debt-to-equity ratio of 1.97, a quick ratio of 0.74 and a current ratio of 1.42. The firm has a market capitalization of $6.58 billion, a PE ratio of 23.01, a P/E/G ratio of 1.99 and a beta of 0.49. The stock has a 50-day simple moving average of $50.00 and a two-hundred day simple moving average of $46.00.

Lamb Weston Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, December 4th. Stockholders of record on Friday, November 6th will be paid a dividend of $0.38 per share. This represents a $1.52 annualized dividend and a dividend yield of 3.2%. The ex-dividend date is Friday, November 6th. Lamb Weston’s dividend payout ratio (DPR) is currently 73.08%.

Wall Street Analysts Forecast Growth

LW has been the subject of a number of recent research reports. Stifel Nicolaus boosted their price objective on shares of Lamb Weston from $45.00 to $52.00 and gave the stock a “hold” rating in a report on Monday, July 27th. Sanford C. Bernstein lifted their price target on Lamb Weston from $42.00 to $57.00 and gave the stock a “market perform” rating in a research note on Tuesday, July 28th. TD Cowen boosted their price objective on Lamb Weston from $40.00 to $52.00 and gave the company a “hold” rating in a research report on Tuesday, July 28th. Weiss Ratings raised shares of Lamb Weston from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Tuesday, July 28th. Finally, JPMorgan Chase & Co. decreased their price objective on shares of Lamb Weston from $52.00 to $46.00 and set a “neutral” rating on the stock in a research report on Wednesday, September 30th. Three research analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus price target of $52.45.

Key Stories Impacting Lamb Weston

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

• Positive Sentiment: Quarterly earnings beat expectations: Fiscal Q1 adjusted EPS was $0.75, exceeding the $0.59 consensus estimate, while revenue of $1.67 billion topped forecasts of $1.65 billion and rose approximately 1% year over year. Lamb Weston Surpasses Q1 Earnings and Revenue Estimates
• Positive Sentiment: Guidance was raised: Lamb Weston increased its fiscal 2027 outlook for net sales to low-single-digit growth, adjusted EBITDA to $1.125 billion-$1.215 billion, and adjusted EPS to $3.05-$3.35, above the roughly $3.02 analyst consensus. Lamb Weston Lifts Fiscal 2027 Outlook
• Positive Sentiment: North America and efficiency gains supported results: North American sales rose 5.2% to $1.14 billion, with cost-saving measures helping the bottom line. This fueled optimism that the company’s turnaround is gaining traction, despite weaker international performance.
• Positive Sentiment: Dividend maintained: The company declared a quarterly dividend of $0.38 per share, equivalent to $1.52 annually and a yield of approximately 3.2%.
• Neutral Sentiment: Leadership transition announced: Lamb Weston disclosed a planned transition and separation involving its international president. The change could matter for investors, although no immediate operational impact was specified. Lamb Weston Announces Planned Transition of International President
• Negative Sentiment: Profitability remains pressured: Reported net income fell to about $29 million from $64 million a year earlier, while international sales declined 8%. Wells Fargo also lowered its price target to $54 from $57, though it retained an Overweight rating.

About Lamb Weston

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.