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]

_________________________________________________________________ FORM 10-Q _________________________________________________________________ (Mark One) Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended November 23, 2025 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Co ...

Key Takeaways LW posted Q2 EPS of 69 cents and sales of $1.62B, topping consensus estimates despite lower Y/Y earnings.Volume rose 8% on customer wins and share gains, while price/mix fell 8% amid pricing and trade support.North America EBITDA rose on higher volumes and cost savings, while International EBITDA fell on higher costs.Lamb Weston Holdings, Inc. ((LW) reported solid second-quarter fiscal 2026 results, wherein both top and bottom lines beat the Zacks Consensus Estimate. While net sales increased, ...

U.S. stocks traded higher midway through trading, with the Nasdaq Composite gaining more than 1% on Friday.The Dow traded up 0.55% to 48,216.43 while the NASDAQ jumped 1.10% to 23,260.50. The S&P 500 also rose, gaining, 0.83% to 6,830.85.Check This Out: Top 3 Industrials Stocks That Could Blast Off This MonthLeading and Lagging SectorsInformation technology shares rose by 1.6% on Friday.In trading on Friday, consumer staples stocks fell by 0.4%.Top HeadlineShares of Nike Inc. (NYSE:NKE) fell around 10% on F ...

U.S. stocks traded higher midway through trading, with the Nasdaq Composite gaining more than 1% on Friday.The Dow traded up 0.55% to 48,216.43 while the NASDAQ jumped 1.10% to 23,260.50. The S&P 500 also rose, gaining, 0.83% to 6,830.85.Check This Out: Top 3 Industrials Stocks That Could Blast Off This MonthLeading and Lagging SectorsInformation technology shares rose by 1.6% on Friday.In trading on Friday, consumer staples stocks fell by 0.4%.Top HeadlineShares of Nike Inc. (NYSE:NKE) fell around 10% on F ...

Key Points Sales volume increased for Lamb Weston, but a lower pricing mix offset this gain. Meanwhile, profitability remains weak as the company ramps up production at its new facilities. Ultimately, guidance was disappointing, so Lamb Weston may be deserving of its discounted valuation for the time being. 10 stocks we like better than Lamb Weston › Shares of leading frozen potato supplier Lamb Weston (NYSE: LW) plummeted 22% as of 11 a.m. ET on Friday after the French fry juggernaut provided u ...

Financial Data and Key Metrics Changes - Second quarter net sales increased by 1%, with a $24 million benefit from foreign currency translation, while on a constant currency basis, net sales were essentially flat compared to last year [14] - Volume rose by 8% in the second quarter, driven by customer wins and share gains, despite softer restaurant traffic [14] - Adjusted EBITDA declined by $9 million year-over-year to $286 million, primarily due to unfavorable Price/Mix [17] - Adjusted Gross Profit decreased by $16 million year-over-year, mainly due to unfavorable Price/Mix [17] - Free cash flow was strong at $375 million, with capital expenditures down to $156 million in the first half, reflecting disciplined investment [22][23] Business Line Data and Key Metrics Changes - North America segment net sales were essentially flat compared to the prior year, with volume increasing by 8% supported by recent customer contract wins [15] - International segment net sales increased by 4%, including a favorable foreign currency impact of $23 million, but declined by 1% on a constant currency basis [15][16] - Adjusted EBITDA in the North America segment increased by 7% to $288 million, reflecting strong execution and higher sales volume [20] - Adjusted EBITDA in the International segment declined by $21 million to $27 million, impacted by price and trade to support customers and higher manufacturing costs [20] Market Data and Key Metrics Changes - In North America, QSR traffic was flat, with QSR chicken growing while QSR burger traffic was down by 3% [14] - Internationally, restaurant traffic in most markets declined, including a 3% decrease in the U.K., the largest international market [14] - Asia, including China, led volume growth in the quarter, with growth also seen with multinational chain customers [16] Company Strategy and Development Direction - The company is executing its "Focus to Win" strategy, focusing on strengthening customer partnerships and driving cost savings [4][7] - The company is reopening previously curtailed capacity in North America to meet customer demand and maintain high fill rates [4][9] - The company is building a culture of continuous improvement and reducing volatility through customer contracting and raw procurement strategies [5][6] - The company is investing in innovation, including the launch of new products like Snap Fries, to capture additional market opportunities [12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a dynamic macroeconomic and competitive environment, particularly in international markets, but expressed confidence in long-term profitable growth [6][24] - The company expects continued volume growth and strong sales momentum for the remainder of the fiscal year, particularly in North America [24] - Price/Mix is anticipated to remain unfavorable in the second half, but to a lesser extent than in the first half [24][25] - Management remains committed to returning cash to shareholders, with a 3% increase in the quarterly dividend [7][23] Other Important Information - The company ended the quarter with approximately $1.43 billion of liquidity, including $1.35 billion available under its revolving credit facility [22] - The company has repurchased $40 million of shares during the second quarter and has $308 million remaining under its current repurchase authorization [23] Q&A Session Summary Question: Regarding rebalancing supply and demand in Europe - Management confirmed that they are curtailing a single line in the European market while reopening curtailed lines in North America due to strong volume [33] Question: On North America volume drivers and seasonal uptick - Management indicated that the mix shift towards private label and multinational chain customers will continue to affect gross margins in the back half of the year [36] Question: Update on Asia export markets and competition - Management acknowledged increased competition in Asia but expressed confidence in future growth due to strong customer support [42] Question: Clarification on gross margin expectations for the second half - Management confirmed that gross margins are expected to be flat to down in the second half, primarily due to mix shifts and ramp-up costs in Argentina [46] Question: Impact of reopening capacity in North America - Management stated that reopening additional capacity is necessary to meet customer expectations and will not negatively impact profitability [57] Question: Capital allocation and share repurchases - Management reiterated their commitment to capital allocation priorities, including opportunistic share repurchases while investing in the business [110]

Financial Data and Key Metrics Changes - Second quarter net sales increased by 1%, with a $24 million benefit from foreign currency translation, while on a constant currency basis, net sales were essentially flat compared to last year [14] - Volume rose by 8% in the second quarter, driven by customer wins and share gains, despite softer restaurant traffic [14][15] - Adjusted EBITDA declined by $9 million year-over-year to $286 million, while adjusted gross profit decreased by $16 million primarily due to unfavorable price mix [17][18] - Free Cash Flow was strong at $375 million, with capital expenditures down to $156 million in the first half, reflecting disciplined investment [22][23] Business Line Data and Key Metrics Changes - North America segment net sales were essentially flat year-over-year, with volume increasing by 8% supported by recent customer contract wins [15] - International segment net sales increased by 4%, including a favorable foreign currency impact of $23 million, but declined by 1% on a constant currency basis [15][16] - Adjusted EBITDA in the North America segment increased by 7% to $288 million, while the international segment's adjusted EBITDA declined by $21 million to $27 million [20] Market Data and Key Metrics Changes - In North America, QSR traffic was flat, with QSR chicken growing while QSR burger traffic was down by 3% [14] - Internationally, restaurant traffic in most markets declined, including a 3% drop in the U.K., the largest international market [14] - Asia, including China, led volume growth in the quarter, with multinational chain customers also contributing to growth [16] Company Strategy and Development Direction - The company is executing its "Focus to Win" strategy, strengthening customer partnerships and driving cost savings [4][7] - The reopening of previously curtailed capacity in North America aims to meet customer demand and maintain high fill rates [4][9] - The company is focused on building a culture of continuous improvement and reducing volatility through customer contracting and raw procurement strategies [5][6] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a dynamic macroeconomic and competitive environment, particularly in international markets, but expressed confidence in their plans for long-term profitable growth [6][10] - The company expects continued volume growth and strong sales momentum for the remainder of the fiscal year, with North America remaining solid [24] - Price mix is anticipated to remain unfavorable in the second half, but to a lesser extent than the first half [25] Other Important Information - The board approved a 3% increase to the quarterly dividend, reflecting the company's commitment to returning cash to shareholders [7][23] - The company is actively working to rebalance supply and demand within its network, ensuring the right assets are in place to serve priority markets [11] Q&A Session Summary Question: Regarding rebalancing supply and demand in Europe - Management confirmed that they are curtailing a single line in the European market while reopening curtailed lines in North America due to strong volume [33] Question: On North America volume drivers and seasonal uptick - Management indicated that the mixed impact is significant, with a shift from branded to private label affecting gross margins [35][36] Question: Update on Asia export markets and competition - Management acknowledged increased competition in Asia but expressed confidence in future growth, particularly in Argentina and Latin America [42] Question: Clarification on gross margin expectations - Management confirmed that the flat to down commentary on gross margin applies to the second half of the year, with expectations for moderation in seasonal trends [46] Question: Impact of reopening capacity in North America - Management stated that reopening additional capacity is necessary to meet customer expectations and does not expect a negative impact on profitability [57][58] Question: Execution improvements and accountability - Management highlighted the implementation of clear accountabilities and KPIs across the supply chain to enhance execution [68] Question: Concerns about future EBITDA guidance - Management emphasized the importance of prudence in guidance, citing ongoing competitive pressures and macroeconomic headwinds [73][75] Question: Price mix dynamics in North America - Management noted that price mix headwinds are expected to moderate slightly in the second half as they lap prior pricing actions [86] Question: Industry capacity for frozen spuds - Management reiterated that the market is expected to be rational over time, with some delays and postponements in capacity additions [100]

Lamb Weston (LW) reported $1.62 billion in revenue for the quarter ended November 2025, representing a year-over-year increase of 1.1%. EPS of $0.69 for the same period compares to $0.66 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $1.59 billion, representing a surprise of +1.6%. The company delivered an EPS surprise of +2.99%, with the consensus EPS estimate being $0.67.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Stree ...

Financial Data and Key Metrics Changes - In the second quarter, net sales increased by 1%, with a $24 million benefit from foreign currency translation, while on a constant currency basis, net sales were essentially flat compared to last year [14] - Volume rose by 8%, driven by customer wins and share gains, despite softer restaurant traffic [14] - Adjusted EBITDA declined by $9 million year-over-year to $286 million, while adjusted gross profit decreased by $16 million primarily due to unfavorable price mix [17][18] - Free Cash Flow was strong at $375 million, with capital expenditures down to $156 million in the first half, reflecting disciplined investment [22][23] Business Line Data and Key Metrics Changes - North America net sales were essentially flat year-over-year, with an 8% increase in volume supported by recent customer contract wins [15] - International segment net sales increased by 4%, but declined by 1% on a constant currency basis, with volume growth of 7% [15][16] - Adjusted EBITDA in North America increased by 7% to $288 million, while the international segment's adjusted EBITDA declined to $27 million due to pricing pressures and higher manufacturing costs [19][20] Market Data and Key Metrics Changes - In North America, QSR traffic was flat, with QSR chicken growing while QSR burger traffic declined by 3% [14] - Internationally, restaurant traffic in most markets declined, including a 3% drop in the U.K., the largest international market [14] - Asia, including China, led volume growth in the quarter, with multinational chain customers also contributing to growth [16] Company Strategy and Development Direction - The company is executing its "Focus to Win" strategy, focusing on strengthening customer partnerships and driving cost savings [4][6] - The company is reopening previously curtailed capacity in North America to meet customer demand and maintain high fill rates [4][9] - The company is building a culture of continuous improvement and reducing volatility through customer contracting and raw procurement strategies [5] Management's Comments on Operating Environment and Future Outlook - Management noted a dynamic macroeconomic and competitive environment, particularly in international markets, but expressed confidence in their plans to control controllables for long-term growth [5][6] - The company expects continued volume growth and strong sales momentum for the second half of the fiscal year, with North America volumes expected to grow at or above first-half rates [24] - Price mix is anticipated to remain unfavorable in the second half, but to a lesser extent than the first half [25] Other Important Information - The company repurchased $40 million of shares during the second quarter and announced a 3% increase in the quarterly dividend [6][23] - The company is actively working to rebalance supply and demand within its network, ensuring the right assets are in place to serve priority markets [11] Q&A Session Summary Question: Regarding rebalancing supply and demand in Europe - Management confirmed that they are curtailing a single line in Europe and are looking across the global supply chain to balance supply and demand [28][29] Question: Volume drivers in North America for the back half of the year - Management indicated that a significant component of volume growth is driven by a higher proportion of business with multinational chain customers and a shift from branded to private label [30][31] Question: Update on international markets, particularly Asia - Management acknowledged increased competition in Asia but expressed confidence in future growth, particularly in Latin America [32][33] Question: Gross margin expectations for the second half - Management clarified that gross margins are expected to be flat to down in the second half, primarily due to mixed shifts and pricing headwinds [34][35] Question: Capacity decisions in North America - Management explained that high utilization rates necessitated reopening additional capacity to meet customer expectations, with no expected negative impact on profitability [39][40] Question: Execution improvements and metrics - Management highlighted the implementation of clear accountabilities and KPIs across the supply chain to enhance execution and predictability [42][43] Question: Capital allocation and share repurchases - Management reiterated their commitment to disciplined capital allocation, including opportunistic share repurchases while investing in business capabilities [61]