Lamb Weston Holdings Inc Up 2.45% To $80.79 After Earnings Beat

Wednesday, October 5, 2022 - Lamb Weston Holdings Inc (LW) reported upside earnings and downside revenues.

Analyst expectations for Lamb Weston Holdings Inc earnings per share (EPS) were at $0.49, with the company surpassing those estimates with a reported EPS of $0.75, leading to a positive surprise of $0.26 per share (53%). Lamb Weston Holdings Inc's earnings rose 275% year-over-year as the firm reported an EPS of $0.20 in its year-ago quarter. The positive annual growth shows the Consumer Defensive company is performing well amid recent economic conditions.

Revenues were downbeat at $1.1 billion. That is an increase of 14.41% in revenues from the year-ago report and is 0.35% lower than consensus estimates set at $1.1 billion.

The stock is up 2.45% to $80.79 after the report.

Lamb Weston Holdings Inc's earnings expanded faster than revenues, signaling widening profit margins.

Wall Street Analysts had an average rating of Strong Buy on the stock prior to the report.

Trading in the five days leading up to the report earned Lamb Weston Holdings Inc a Bullish Sentiment Rank from InvestorsObserver.

Lamb Weston Holdings Inc has been a strong performer over the past few months, garnering a high Long-Term Technical Rank by InvestorsObserver of 95, putting Lamb Weston Holdings Inc in the top 25% of stocks. The firm was recently trading at a 52-week high of $83.29 on August 15, 2022 and set a 52-week low on March 14, 2022 at $49.71.

Lamb Weston is the world's second-largest producer of branded and private-label frozen potato products, such as French fries, sweet potato fries, tater tots, diced potatoes, mashed potatoes, hash browns, and chips. The company also has a small appetizer business that produces onion rings, mozzarella sticks, and cheese curds. Including joint ventures, 63% of fiscal 2022 revenue was U.S.-based, with the remainder stemming from Europe, Canada, Japan, China, Korea, Mexico, and several other countries. we estimate Lamb Weston's customer mix is 58% quick-serve restaurants, 19% full-service restaurants, 8% other food service (hotels, commercial cafeterias, arenas, schools), and 16% retail. Lamb Weston became an independent company in 2016 when it was spun off from Conagra.