Earnings To Watch: Lamb Weston (LW) Reports Q3 Results Tomorrow
Potato products company Lamb Weston (NYSE:LW) will be announcing earnings results this Tuesday morning. Here’s what investors should know.
Lamb Weston beat analysts’ revenue expectations last quarter, reporting revenues of $1.77 billion, up 5.6% year on year. It was an exceptional quarter for the company, with a beat of analysts’ EPS estimates and an impressive beat of analysts’ gross margin estimates.
Is Lamb Weston a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Lamb Weston’s revenue to be flat year on year, in line with its flat revenue from the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Lamb Weston rarely misses Wall Street’s revenue estimates.
Looking at Lamb Weston’s peers in the shelf-stable food segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Conagra’s revenues decreased 1.4% year on year, meeting analysts’ expectations, and General Mills reported a revenue decline of 2.8%, topping estimates by 0.9%. Conagra traded down 6.6% following the results while General Mills was also down 1.7%.
Read our full analysis of Conagra’s results here and General Mills’s results here.
Over the past year, investors have repeatedly shifted their focus from one macro narrative to another (AI disruption and AI capex spending to geopolitics, interest rates, and the broader health of the economy). While some of the shelf-stable food stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 6.5% on average over the last month. Lamb Weston is down 11.7% during the same time and is heading into earnings with an average analyst price target of $54.33 (compared to the current share price of $43.63).
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