Russ Cohen

Earnings Preview: What to Expect From Lamb Weston Holdings' Report

Eagle, Idaho-based Lamb Weston Holdings, Inc. (LW) produces, distributes, and markets frozen potato products. Valued at $7.6 billion by market cap, the company offers fries, oven roasted potatoes, puffs, chips, slices, and prepared potato products. The french fry giant is expected to announce its fiscal third-quarter earnings for 2025 before the market opens on Thursday, Apr. 3.

Ahead of the event, analysts expect LW to report a profit of $0.87 per share on a diluted basis, down 27.5% from $1.20 per share in the year-ago quarter. The company missed the consensus estimates in three of the last four quarters while beating or matching the forecast on another occasion. 

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For the full year, analysts expect LW to report EPS of $3.09, down 39.2% from $5.08 in fiscal 2024. However, its EPS is expected to rise 15.9% year over year to $3.58 in fiscal 2026. 

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LW stock has considerably underperformed the S&P 500’s ($SPX7.4% gains over the past 52 weeks, with shares down 49.2% during this period. Similarly, it underperformed the Consumer Staples Select Sector SPDR Fund’s (XLP) 8% gains over the same time frame.

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On Dec. 19, 2024, LW shares closed down more than 20% after reporting its Q2 results. Its adjusted EPS declined 54.5% year over year to $0.66. The company’s revenue stood at $1.6 billion, down 7.6% year over year. 

Analysts’ consensus opinion on LW stock is reasonably bullish, with a “Moderate Buy” rating overall. Out of 11 analysts covering the stock, four advise a “Strong Buy” rating, and seven give a “Hold.” LW’s average analyst price target is $65.73, indicating a potential upside of 23.3% from the current levels.

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