Lamb Weston is a leading supplier of frozen potato products to restaurants and retailers around the world. For 75 years, Lamb Weston has led the industry in innovation, introducing inventive products that simplify back-of- house management for its customers and make things more delicious for their customers. From the fields where Lamb Weston potatoes are grown to proactive customer partnerships, Lamb Weston always strives for more and never settles. Because, when we look at a potato, we see possibilities. L ...

Investors with an interest in Food - Miscellaneous stocks have likely encountered both Kerry Group PLC (KRYAY) and Lamb Weston (LW) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings ...

The most oversold stocks in the consumer staples sector presents an opportunity to buy into undervalued companies.The RSI is a momentum indicator, which compares a stock’s strength on days when prices go up to its strength on days when prices go down. When compared to a stock’s price action, it can give traders a better sense of how a stock may perform in the short term. An asset is typically considered oversold when the RSI is below 30, according to Benzinga Pro.Here's the latest list of major oversold pla ...

The most oversold stocks in the consumer staples sector presents an opportunity to buy into undervalued companies.The RSI is a momentum indicator, which compares a stock’s strength on days when prices go up to its strength on days when prices go down. When compared to a stock’s price action, it can give traders a better sense of how a stock may perform in the short term. An asset is typically considered oversold when the RSI is below 30, according to Benzinga Pro.Here's the latest list of major oversold pla ...

Core Viewpoint - Bernstein SocGen Group has lowered its price target on Lamb Weston to $46 from $65 while maintaining a Market Perform rating, resulting in a more than 1% decline in shares on Monday [1] Group 1: Financial Performance - Lamb Weston's fiscal second-quarter 2026 results exceeded expectations, but full-year FY26 guidance indicates a significant decline in profitability during the second half [2] - At the midpoint of guidance, Bernstein estimates a 0.7% decline in second-half sales, aligning with current trends [2] - EBITDA guidance suggests a 21.2% decline in second-half EBITDA, which is approximately 14% below consensus expectations, raising concerns about earnings sustainability heading into fiscal 2027 [3] Group 2: Customer Retention and Profitability - Bernstein acknowledged Lamb Weston's success in retaining and adding large international customers but questioned the profitability of these wins [4] - Given the uncertainty around margins and future earnings power, Bernstein prefers to remain on the sidelines [4]

Lamb Weston (NYSE:LW) has struggled to regain momentum since July 2023. The stock has remained under persistent selling pressure and continues to trade with pronounced bearish sentiment. When viewed through the Adhishthana framework, this weakness is not incidental but structural. Let's break down how the stock's weekly and monthly cycles deteriorated and what that implies going forward.The Weekly Chart Breakdown On the weekly charts, Lamb Weston is currently in Phase 12 of its 18-phase Adhishthana cycle. T ...

Group 1 - Lamb Weston Holdings, Inc. (NYSE:LW) is a significant player in the frozen foods industry with a global presence [1][6] - BNP Paribas has set a price target of $48 for LW, indicating a potential increase of 12.56% from its current trading price of $42.65 [1][6] - The stock has experienced volatility, with a year-high of $68.61 and a low of $42.45, reflecting significant market fluctuations [2][6] Group 2 - Lamb Weston’s international revenue changes are critical for assessing its financial strength and growth potential in the global economy [3][6] - The company's reliance on international markets provides insights into earnings stability and growth potential, despite challenges such as currency fluctuations and regulatory environments [4] - Lamb Weston has a market capitalization of approximately $5.94 billion, with a trading volume of 4,470,758 shares, indicating substantial market interest [5]

Core Insights - Lamb Weston reported total revenue of $1.62 billion for the quarter ending November 2025, reflecting a 1.1% increase [4] - International operations contributed $548.6 million, accounting for 33.9% of total revenue, which was a surprise of +0.32% compared to analyst expectations [5] - North America generated $1.07 billion, representing 66.1% of total revenue, with a surprise of +1.85% against consensus estimates [6] International Revenue Trends - The international revenue of $548.6 million was lower than the previous quarter's $574.7 million and the year-ago quarter's $528.8 million, indicating a slight decline in contribution [5] - For the upcoming fiscal quarter, analysts project international revenues to be $529.22 million, which would represent a 35.2% contribution to total revenues [7] - Annual revenue projections for Lamb Weston are expected to reach $6.49 billion, with international contributions estimated at $2.25 billion, or 34.7% of total revenue [8] Market Context - The reliance on international markets presents both opportunities and challenges for Lamb Weston, making the analysis of international revenue trends crucial for future forecasts [9] - The increasing interdependencies and geopolitical conflicts are factors that analysts monitor closely when adjusting earnings forecasts for companies with international exposure [10]

Core Insights - Lamb Weston Holdings, Inc. reported fiscal second-quarter earnings per share of $0.69, exceeding the Zacks Consensus Estimate of $0.67, despite a 5% decline in earnings year-over-year [1][6] - The company's revenue for the quarter reached approximately $1.62 billion, surpassing the estimated $1.59 billion, driven by an 8% increase in sales volume [2][6] - The stock experienced a significant decline of 25%, dropping to $44.70, following the earnings report due to negative market reaction to the company's full-year guidance [4][6] Financial Performance - Revenue growth was attributed to customer wins and market share gains, although the price/mix fell by 8% due to pricing and trade support challenges [2] - In North America, Lamb Weston saw an increase in EBITDA due to higher volumes and cost savings, while the International segment faced a decline in EBITDA due to increased costs [3] - The company has a price-to-earnings (P/E) ratio of approximately 15.95 and a price-to-sales ratio of about 0.97, indicating a favorable valuation relative to sales [5] Market Reaction - The market reacted negatively to the company's full-year guidance, projecting flat revenue and an 11% decrease in adjusted EBITDA at the midpoint, despite strong second-quarter performance [4] - The decline in stock price reflects investor concerns over future profitability and market conditions [4]

Financial Performance - Net sales for Q2 fiscal 2026 increased by $17.2 million to $1,618.1 million, with an 8% volume increase offset by an 8% decline in price/mix [88]. - North America segment net sales were essentially flat at $1,069.5 million, with an 8% volume increase driven by customer contract wins, but an 8% decline in price/mix [89]. - International segment net sales increased by $19.8 million, or 4%, to $548.6 million, with a 7% volume increase but an 8% decline in price/mix at constant currency [90]. - Net sales for the first half of fiscal 2026 increased by $22.3 million to $3,277.3 million, with a 7% volume increase offset by an 8% decline in price/mix [101]. - North America segment net sales for the first half declined by $21.8 million, or 1%, to $2,154.0 million, with a 7% volume increase but an 8% decline in price/mix [102]. - Net sales for the same period were $1,618.1 million, down from $1,642.5 million, reflecting a decrease of 1.5% due to currency impacts [130]. - North America net sales for the twenty-six weeks ended November 23, 2025, were $2,154.0 million, a slight decrease of 0.9% from the previous year [133]. Profitability - Gross profit increased by $46.5 million to $324.3 million, while Adjusted Gross Profit declined by $15.6 million to $327.9 million due to unfavorable price/mix [91]. - Gross profit increased by $32.9 million to $666.7 million compared to the first half of fiscal 2025, while adjusted gross profit declined by $29.8 million to $666.8 million due to unfavorable price/mix and increased costs [104]. - Net income rose by $98.2 million to $62.1 million, while Adjusted EBITDA declined by $8.5 million to $285.7 million [93]. - Net income rose by $35.1 million to $126.4 million, while adjusted EBITDA fell by $5.8 million to $285.7 million, impacted by lower adjusted gross profit and equity method investment earnings [107]. - The adjusted income tax expense for the thirteen weeks ended November 23, 2025, was $45.0 million, compared to $53.5 million in the prior year, a decrease of 16.0% [129]. Expenses - SG&A expenses decreased by $13.7 million to $171.0 million, with Adjusted SG&A down by $7.8 million to $145.1 million, driven by cost savings initiatives [92]. - Selling, General and Administrative (SG&A) expenses decreased by $4.0 million to $324.6 million, with adjusted SG&A down by $31.8 million to $277.5 million, reflecting ongoing cost savings initiatives [106]. Segment Performance - North America Segment Adjusted EBITDA increased by $18.6 million to $287.8 million, driven by higher volume and lower manufacturing costs [94]. - International Segment Adjusted EBITDA decreased by $21.4 million to $27.2 million, primarily due to higher manufacturing costs per pound [95]. - North America Segment Adjusted EBITDA remained flat at $547.8 million, with higher sales volumes offset by price and trade support costs [108]. - International Segment Adjusted EBITDA decreased by $15.6 million to $84.4 million, primarily due to unfavorable price/mix and higher manufacturing costs [109]. Cash Flow and Investments - Cash provided by operating activities increased by $101.1 million to $530.4 million, driven by favorable changes in working capital and increased net income [118]. - Investing activities used $137.3 million in cash, significantly lower than $484.9 million in the prior year, primarily for expanding production capacity in Argentina [119]. - Financing activities included net payments of $187.6 million under revolving credit facilities and $103.3 million in cash dividends paid to common stockholders [120]. Tax and Accounting - The effective income tax rate for the first half of fiscal 2026 was 39.9%, down from 41.3% in the prior year, with a higher adjusted effective tax rate of 31.1% compared to 26.3% in the previous year [111]. - The company reported total adjustments of $3.6 million for the thirteen weeks ended November 23, 2025, impacting comparability due to various expenses [129]. - The company has not reported any material changes to off-balance sheet arrangements during the reporting period [134]. - There were no material changes to critical accounting policies and estimates during the second quarter of fiscal 2026 [135]. Risk Management - The company continues to monitor and manage market risks related to currency exchange rates, commodity prices, and interest rates as part of its risk management program [137].