Lamb Weston (NYSE:LW) Issues Earnings Results

Lamb Weston (NYSE:LW) announced its quarterly earnings results on Friday. The specialty retailer reported $0.87 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.63 by $0.24, FiscalAI reports. The company had revenue of $1.77 billion during the quarter, compared to the consensus estimate of $1.70 billion. Lamb Weston had a net margin of 4.61% and a return on equity of 23.77%. The company’s revenue for the quarter was up 5.6% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.87 earnings per share. Lamb Weston updated its FY 2027 guidance to 2.950-3.250 EPS.

Here are the key takeaways from Lamb Weston’s conference call:

• Lamb Weston said fiscal 2026 marked a meaningful turnaround, with North America stabilizing and delivering six straight quarters of volume growth, while full-year North America EBITDA margin reached 26%.
• The company generated $537 million of free cash flow in fiscal 2026, cut capital expenditures to $410 million, and returned $321 million to shareholders through dividends and buybacks.
• Management reaffirmed its Focus to Win strategy and outlined a broader strategic review of international markets, including possible M&A, partnerships, divestitures, and sharper country-cluster priorities, with more details expected at an Investor Day in early calendar 2027.
• International results remained pressured by EMEA weakness, including competitive pricing pressure, slower demand, higher freight costs tied to Middle East disruption, and startup costs from the new Argentina plant.
• For fiscal 2027, Lamb Weston guided to flat to 1% sales growth and adjusted EPS of $2.95 to $3.25, with expectations that earnings will grow faster than sales as cost savings, lower potato costs, and higher utilization offset broader inflation.

Lamb Weston Price Performance

Shares of NYSE:LW opened at $49.57 on Friday. The stock has a market cap of $6.84 billion, a price-to-earnings ratio of 23.83, a PEG ratio of 6.58 and a beta of 0.47. The company has a debt-to-equity ratio of 1.99, a current ratio of 1.46 and a quick ratio of 0.69. Lamb Weston has a 12 month low of $37.62 and a 12 month high of $67.07. The stock’s 50 day moving average price is $44.73 and its 200 day moving average price is $44.25.

Lamb Weston Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, September 4th. Investors of record on Friday, August 7th will be issued a dividend of $0.38 per share. The ex-dividend date of this dividend is Friday, August 7th. This represents a $1.52 annualized dividend and a yield of 3.1%. Lamb Weston’s payout ratio is presently 71.03%.

Analyst Upgrades and Downgrades

A number of research firms have issued reports on LW. Stifel Nicolaus reduced their target price on shares of Lamb Weston from $50.00 to $45.00 and set a “hold” rating for the company in a research note on Thursday, April 2nd. JPMorgan Chase & Co. boosted their price objective on Lamb Weston from $43.00 to $48.00 and gave the stock a “neutral” rating in a research report on Thursday, July 9th. Bank of America lowered their target price on Lamb Weston from $49.00 to $47.00 and set a “neutral” rating on the stock in a research report on Thursday, April 2nd. Weiss Ratings reaffirmed a “sell (d+)” rating on shares of Lamb Weston in a research note on Wednesday, July 8th. Finally, Stephens initiated coverage on Lamb Weston in a research report on Wednesday, May 27th. They set an “equal weight” rating and a $46.00 price target for the company. Three research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average price target of $49.27.

Institutional Trading of Lamb Weston

Hedge funds and other institutional investors have recently modified their holdings of the company. Price T Rowe Associates Inc. MD lifted its holdings in shares of Lamb Weston by 27.4% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 9,824,690 shares of the specialty retailer’s stock valued at $411,558,000 after buying an additional 2,111,874 shares during the period. State Street Corp grew its holdings in Lamb Weston by 1.1% during the second quarter. State Street Corp now owns 5,801,585 shares of the specialty retailer’s stock worth $300,812,000 after acquiring an additional 63,865 shares during the period. Invesco Ltd. raised its position in Lamb Weston by 2.5% in the third quarter. Invesco Ltd. now owns 3,286,305 shares of the specialty retailer’s stock worth $190,869,000 after acquiring an additional 79,257 shares in the last quarter. BROOKFIELD Corp ON raised its position in Lamb Weston by 29.0% in the fourth quarter. BROOKFIELD Corp ON now owns 2,226,311 shares of the specialty retailer’s stock worth $93,260,000 after acquiring an additional 500,000 shares in the last quarter. Finally, Dimensional Fund Advisors LP lifted its holdings in Lamb Weston by 8.7% in the 4th quarter. Dimensional Fund Advisors LP now owns 2,141,037 shares of the specialty retailer’s stock valued at $89,688,000 after acquiring an additional 172,165 shares during the last quarter. Institutional investors own 89.56% of the company’s stock.

More Lamb Weston News

Here are the key news stories impacting Lamb Weston this week:

• Positive Sentiment: Lamb Weston beat fiscal Q4 earnings and revenue estimates, with stronger North American volume driving the top line. Lamb Weston (LW) Q4 Earnings and Revenues Beat Estimates
• Positive Sentiment: The company issued FY 2027 guidance that implies modest growth and revenue above consensus, suggesting management confidence in the turnaround. Lamb Weston earnings report
• Neutral Sentiment: Management said higher production and cost savings are helping offset inflation and geopolitical disruptions, but those headwinds are still affecting international sales. Seeking Alpha news
• Neutral Sentiment: Analysts remain cautious despite the beat, with at least one downgrade saying the stock may be past the worst but still faces meaningful challenges. Lamb Weston: Passing The Bottom, But Challenges Remain (Downgrade)
• Negative Sentiment: International weakness, inflation, and geopolitical volatility continue to pressure margins and could limit how quickly earnings improve. Lamb Weston Posts Higher Sales on North America Growth

About Lamb Weston

Lamb Weston, traded on the NYSE under the symbol LW, is a leading global processor and supplier of frozen potato products. The company’s portfolio includes a variety of potato-based items such as French fries, potato wedges, hash browns and specialty cuts tailored to the foodservice and retail grocery channels. Lamb Weston serves quick-service restaurants, full-service operators, grocery chains and food distributors, offering customized product formats, packaging solutions and seasoning options to meet evolving customer demands.

Founded in 1950 and headquartered in Eagle, Idaho, Lamb Weston has grown from a regional processor into one of the world’s largest producers of frozen potato products.