Based in Eagle, Idaho, Lamb Weston Holdings, Inc. (LW) is a premier supplier of frozen potato products to restaurants and retailers worldwide. With a market cap of $11.90 billion, Lamb Weston is recognized for its extensive product range, which includes fries, mashed potatoes, and other potato-based offerings. The company is set to announce its fiscal Q4 earnings results before the market opens on Wednesday, Jul. 24.
Ahead of the event, analysts expect LW to report a profit of $1.24 per share, up 1.6% from $1.22 per share in the year-ago quarter. In the last four quarters, the company surpassed Wall Street’s bottom-line estimates in three and missed on another occasion.
LW's adjusted earnings of $1.20 per share for the last reported quarter missed the consensus estimate by 14.3%. Higher costs and lower-than-expected sales contributed to LW's earnings miss.
For fiscal 2024, analysts expect LW to report EPS of $5.54, up 18.4% from $4.68 in fiscal 2023. Fiscal 2025 EPS is expected to grow 10.3% year over year to $6.11.
LW stock is down 23.8% on a YTD basis, underperforming the broader S&P 500 Index's ($SPX) 16.7% gains and the Consumer Staples Select Sector SPDR Fund (XLP) 7.4% returns over the same time frame.
LW reported fiscal third-quarter revenue of $1.46 billion on Apr. 4, which fell short of the $1.63 billion forecast by analysts. For the full year, LW anticipates revenue ranging from $6.54 billion to $6.60 billion. The share plummeted 19.4% after the food processing company reported its results.
However, the consensus view on LW stock is bullish, with an overall “Strong Buy” rating. All 10 analysts covering the stock recommend a “Strong Buy.” LW's average analyst price target is $111.30, indicating a potential upside of 35.1% from the current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
