Core Viewpoint - Lamb Weston Holdings, Inc. is consolidating its production in Latin America by closing its Munro plant in Argentina and moving operations to a new facility in Mar del Plata, Argentina, as part of a strategy to improve profitability and operational efficiency [1][2]. Group 1: Strategic Actions - The closure of the Munro plant is part of a broader strategy aimed at enhancing operational efficiency and managing costs across the supply chain [2]. - The company plans to temporarily curtail a production line in the Netherlands in addition to the Munro closure [3]. - These actions align with the company's "Focus to Win" strategy, which emphasizes prioritizing markets, strengthening customer partnerships, and fostering innovation [4]. Group 2: Employee Impact - Approximately 100 employees will be affected by the closure of the Munro plant and will receive severance packages in accordance with local regulations [3]. Group 3: Company Overview - Lamb Weston is a leading supplier of frozen potato products, with a history of 75 years in the industry, focusing on innovation and customer partnerships [5].

Core Viewpoint - The comparison between Kerry Group PLC (KRYAY) and Lamb Weston (LW) indicates that KRYAY currently presents a more attractive investment opportunity for value investors due to its stronger Zacks Rank and favorable valuation metrics [1][3]. Valuation Metrics - KRYAY has a forward P/E ratio of 14.48, while LW has a forward P/E of 14.83, suggesting KRYAY is relatively cheaper [5]. - The PEG ratio for KRYAY is 2.94, compared to LW's PEG ratio of 6.10, indicating KRYAY's expected earnings growth is more favorable [5]. - KRYAY's P/B ratio stands at 2.13, whereas LW's P/B ratio is 3.27, further highlighting KRYAY's better valuation [6]. Zacks Rank and Style Scores - KRYAY holds a Zacks Rank of 2 (Buy), indicating a positive earnings estimate revision trend, while LW has a Zacks Rank of 5 (Strong Sell) [3]. - KRYAY earns a Value grade of B, while LW receives a Value grade of C, reinforcing KRYAY's position as the preferred choice for value investors [6].

Core Insights - The consumer staples sector has several oversold stocks that present buying opportunities for undervalued companies [1] Group 1: Oversold Stocks - Cal-Maine Foods Inc (NASDAQ: CALM) has an RSI of 29.9, with a recent stock price of $80.52, down 1.9% [6] - Lamb Weston Holdings Inc (NYSE: LW) has an RSI of 18.5, with a recent stock price of $41.95, up 0.3% [6] - DDC Enterprise Ltd (NYSE: DDC) has an RSI of 28.2, with a recent stock price of $2.08, down 3.3% [6] Group 2: Company Performance - Cal-Maine Foods reported quarterly net sales growth of 1% year-over-year to $1.62 billion, exceeding estimates of $1.59 billion, with an 8% increase in overall volume [6] - Lamb Weston achieved robust volume growth and market share gains, with a commitment to a $100 million cost savings program target for fiscal 2026 [6] - DDC Enterprise announced the acquisition of 100 Bitcoin, despite a 32% stock decline over the past month [6]

Core Insights - The consumer staples sector has identified oversold stocks, presenting potential buying opportunities for undervalued companies [1] Group 1: Oversold Stocks - Cal-Maine Foods Inc (NASDAQ:CALM) has an RSI of 29.9, with a recent stock price of $80.52, down 1.9% [6] - Lamb Weston Holdings Inc (NYSE:LW) has an RSI of 18.5, with a recent stock price of $41.95, up 0.3% [6] - DDC Enterprise Ltd (NYSE:DDC) has an RSI of 28.2, with a recent stock price of $2.08, down 3.3% [6] Group 2: Company Performance - Cal-Maine Foods reported quarterly net sales growth of 1% year-over-year to $1.62 billion, exceeding the $1.59 billion estimate, with an 8% increase in overall volume [6] - Lamb Weston achieved robust volume growth and market share gains, with a commitment to a $100 million cost savings program target for fiscal 2026 [6] - DDC Enterprise announced the acquisition of 100 Bitcoin, despite a 32% decline in stock price over the past month [6]

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]

Core Viewpoint - Lamb Weston has faced persistent selling pressure since July 2023, indicating structural weakness rather than incidental issues [1] Weekly Chart Breakdown - Currently in Phase 12 of the 18-phase Adhishthana cycle, Lamb Weston previously entered Phase 4 in December 2019 and formed a Cakra pattern through Phase 8, which typically indicates bullish potential [2][3] - Instead of breaking out in Phase 9, the stock reversed and broke its Cakra downwards, triggering a bearish outcome known as the Move of Pralaya, leading to a decline of over 61% [5] Monthly Chart Analysis - On the monthly chart, Lamb Weston is in Phase 2, which consists of a Sankhya period followed by a Buddhi period; however, the stock rallied prematurely during the Sankhya period, leading to unsustainable gains [6][8] - As the stock transitioned into the Buddhi phase, it experienced a sharp collapse, reinforcing the bearish setup and highlighting the lack of structural support for the rally [9] Investor Outlook - With the downside Cakra breakdown and Phase 2 deviation, Lamb Weston remains structurally weak, and the current bearish sentiment is expected to continue [11] - Investors should exercise patience and wait for clearer opportunities, which may arise once the stock reaches its Guna Triads [11]

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].