Lamb Weston (NYSE:LW) Shares Gap Up Following Earnings Beat

Lamb Weston (NYSE:LW) gapped up prior to trading on Tuesday following a better than expected earnings announcement. The stock had previously closed at $44.57, but opened at $47.03. Lamb Weston shares last traded at $48.9630, with a volume of 1,287,850 shares changing hands.

The specialty retailer reported $0.75 EPS for the quarter, beating analysts’ consensus estimates of $0.59 by $0.16. The company had revenue of $1.67 billion during the quarter, compared to analysts’ expectations of $1.65 billion. Lamb Weston had a net margin of 3.85% and a return on equity of 23.27%. Lamb Weston’s revenue for the quarter was up .7% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.74 earnings per share. Lamb Weston has set its FY 2027 guidance at 3.050-3.350 EPS.

Lamb Weston Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, December 4th. Stockholders of record on Friday, November 6th will be issued 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 is currently 73.08%.

Trending Headlines about Lamb Weston

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

Several research analysts recently weighed in on the company. Barclays boosted their target price on Lamb Weston from $50.00 to $56.00 and gave the stock an “overweight” rating in a research note on Monday, July 27th. JPMorgan Chase & Co. raised their price target on Lamb Weston from $46.00 to $53.00 and gave the stock a “neutral” rating in a report on Wednesday. Sanford C. Bernstein boosted 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. Weiss Ratings upgraded shares of Lamb Weston from a “sell (d+)” rating to a “hold (c-)” rating in a report on Tuesday, July 28th. Finally, Wells Fargo & Company decreased their price objective on shares of Lamb Weston from $57.00 to $54.00 and set an “overweight” rating for the company in a research report on Wednesday. Three investment analysts have rated the stock with a Buy rating and ten have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Hold” and an average target price of $53.18.

Institutional Investors Weigh In On Lamb Weston

A number of large investors have recently bought and sold shares of the company. Principal Financial Group Inc. boosted its holdings in shares of Lamb Weston by 349.1% in the 1st quarter. Principal Financial Group Inc. now owns 690,493 shares of the specialty retailer’s stock valued at $29,180,000 after acquiring an additional 536,745 shares during the last quarter. Hsbc Holdings PLC raised its position in Lamb Weston by 11.4% during the first quarter. Hsbc Holdings PLC now owns 525,541 shares of the specialty retailer’s stock valued at $21,762,000 after acquiring an additional 53,655 shares in the last quarter. Man Group plc acquired a new position in Lamb Weston in the second quarter valued at approximately $963,000. JANA Partners Management LP lifted its holdings in Lamb Weston by 7.7% in the second quarter. JANA Partners Management LP now owns 5,394,635 shares of the specialty retailer’s stock valued at $232,940,000 after acquiring an additional 386,000 shares during the period. Finally, Adams Diversified Equity Fund Inc. boosted its position in Lamb Weston by 99.6% in the 4th quarter. Adams Diversified Equity Fund Inc. now owns 185,400 shares of the specialty retailer’s stock worth $7,766,000 after purchasing an additional 92,500 shares in the last quarter. Hedge funds and other institutional investors own 89.56% of the company’s stock.

Lamb Weston Trading Up 0.2%

The company has a current ratio of 1.45, a quick ratio of 0.74 and a debt-to-equity ratio of 1.98. The company has a 50-day simple moving average of $49.88 and a 200 day simple moving average of $46.06. The firm has a market cap of $6.60 billion, a PE ratio of 26.24, a price-to-earnings-growth ratio of 2.06 and a beta of 0.49.

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.