Examining the Future: Lamb Weston Hldgs's Earnings Outlook
Lamb Weston Hldgs (NYSE:LW) is preparing to release its quarterly earnings on Wednesday, 2025-07-23. Here's a brief overview of what investors should keep in mind before the announcement.
Analysts expect Lamb Weston Hldgs to report an earnings per share (EPS) of $0.64.
Lamb Weston Hldgs bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.
New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).
Past Earnings Performance
Last quarter the company beat EPS by $0.23, which was followed by a 0.96% drop in the share price the next day.
Here's a look at Lamb Weston Hldgs's past performance and the resulting price change:
| Quarter | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 |
|---|---|---|---|---|
| EPS Estimate | 0.87 | 1.01 | 0.72 | 1.26 |
| EPS Actual | 1.10 | 0.66 | 0.73 | 0.78 |
| Price Change % | -1.0% | -1.0% | 3.0% | -6.0% |
Tracking Lamb Weston Hldgs's Stock Performance
Shares of Lamb Weston Hldgs were trading at $48.04 as of July 21. Over the last 52-week period, shares are down 13.62%. Given that these returns are generally negative, long-term shareholders are likely bearish going into this earnings release.
Analyst Opinions on Lamb Weston Hldgs
For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Lamb Weston Hldgs.
The consensus rating for Lamb Weston Hldgs is Neutral, based on 4 analyst ratings. With an average one-year price target of $59.5, there's a potential 23.86% upside.
Peer Ratings Overview
The analysis below examines the analyst ratings and average 1-year price targets of Post Holdings, Cal-Maine Foods and Conagra Brands, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.
- Analysts currently favor an Outperform trajectory for Post Holdings, with an average 1-year price target of $129.0, suggesting a potential 168.53% upside.
- Analysts currently favor an Neutral trajectory for Cal-Maine Foods, with an average 1-year price target of $101.67, suggesting a potential 111.64% upside.
- Analysts currently favor an Neutral trajectory for Conagra Brands, with an average 1-year price target of $21.93, suggesting a potential 54.35% downside.
Summary of Peers Analysis
The peer analysis summary outlines pivotal metrics for Post Holdings, Cal-Maine Foods and Conagra Brands, demonstrating their respective standings within the industry and offering valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Lamb Weston Hldgs | Neutral | 4.27% | $422.50M | 8.94% |
| Post Holdings | Outperform | -2.35% | $545.80M | 1.62% |
| Cal-Maine Foods | Neutral | 101.64% | $716.12M | 22.97% |
| Conagra Brands | Neutral | -4.27% | $707.20M | 2.89% |
Key Takeaway:
Lamb Weston Hldgs ranks in the middle for Consensus rating. It is at the bottom for Revenue Growth and Gross Profit, but at the top for Return on Equity among its peers.
Unveiling the Story Behind Lamb Weston Hldgs
Lamb Weston is North America's largest and the world's second-largest producer of branded and private-label frozen potato products, both by volume and value. The company's portfolio is anchored by french fries, but it also sells sweet potato fries, tater tots, diced potatoes, mashed potatoes, hash browns, and chips. Roughly two thirds of revenue comes from its home market of North America, with none of the other 100 countries the company sells into representing a significant share. McDonald's is Lamb Weston's single-largest customer at 14% of fiscal 2024 sales, with no other company representing more than 10%. Lamb Weston became an independent company in 2016 when it was spun off from Conagra.
Breaking Down Lamb Weston Hldgs's Financial Performance
Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.
Positive Revenue Trend: Examining Lamb Weston Hldgs's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 4.27% as of 28 February, 2025, showcasing a substantial increase in top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Consumer Staples sector.
Net Margin: Lamb Weston Hldgs's net margin is impressive, surpassing industry averages. With a net margin of 9.6%, the company demonstrates strong profitability and effective cost management.
Return on Equity (ROE): Lamb Weston Hldgs's ROE stands out, surpassing industry averages. With an impressive ROE of 8.94%, the company demonstrates effective use of equity capital and strong financial performance.
Return on Assets (ROA): Lamb Weston Hldgs's ROA stands out, surpassing industry averages. With an impressive ROA of 1.96%, the company demonstrates effective utilization of assets and strong financial performance.
Debt Management: Lamb Weston Hldgs's debt-to-equity ratio is notably higher than the industry average. With a ratio of 2.61, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.
To track all earnings releases for Lamb Weston Hldgs visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
