Lamb Weston Holdings, Inc. (NYSE:LW) Q2 2025 Results Conference Call December 19, 2024 8:00 AM ET Company Participants Dexter Congbalay - Vice President, Investor Relations Tom Werner - President, Chief Executive Officer Bernadette Madarieta - Chief Financial Officer Conference Call Participants Andrew Lazar - Barclays Peter Galbo - Bank of America Tom Palmer - Citi Ken Goldman - JPMorgan Robert Moskow - TD Cowen Rob Dickerson - Jefferies Alexia Howard - Bernstein Steve Powers - Deutsche Bank Max Gumport - ...

Shares of Post Holdings (NYSE: POST ) have been a solid performer over the past year as it has successfully integrated M&A deals, enabling solid free cash flow results. That said, shares have ticked down in recent days, amidOver fifteen years of experience making contrarian bets based on my macro view and stock-specific turnaround stories to garner outsized returns with a favorable risk/reward profile. If you want me to cover a specific stock or have a question for an article, just let me know!Analyst’s Dis ...

Lamb Weston (LW) came out with quarterly earnings of $0.66 per share, missing the Zacks Consensus Estimate of $1.02 per share. This compares to earnings of $1.45 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -35.29%. A quarter ago, it was expected that this frozen foods supplier would post earnings of $0.73 per share when it actually produced earnings of $0.73, delivering no surprise.Over the last four quarters, the company ...

Key TakeawaysLamb Weston appointed a new CEO Thursday as the maker of frozen fries swung to a surprise second-quarter loss and cut its fiscal 2025 guidance.The Idaho-based company reported a second-quarter loss of $36.1 million, or $0.25 per share, while analysts were expecting a profit of $88.0 million, or $0.61 per share.Lamb Weston shares fell almost 20% in premarket trading. Shares of Lamb Weston (LW) plunged nearly 20% in premarket trading Thursday after the maker of frozen fries swung to a surprise lo ...

Financial Performance - Net sales declined 8% to $1,601 million in Q2 FY2025 compared to Q2 FY2024[2] - Net income declined $251 million to a loss of $36 million in Q2 FY2025[2] - Adjusted EBITDA declined 25% to $282 million in Q2 FY2025[2] - Net sales for the thirteen weeks ended November 24, 2024 decreased to $1,600.9 million from $1,732.1 million in the prior year period[44] - Gross profit for the thirteen weeks ended November 24, 2024 declined to $277.8 million from $475.6 million in the prior year period[44] - Net income for the thirteen weeks ended November 24, 2024 was a loss of $36.1 million compared to a profit of $215.0 million in the prior year period[44] - Net income for the period ended November 24, 2024, was $91.3 million, compared to $449.8 million in the same period last year[53] - Net income for the twenty-six weeks ended November 24, 2024, was $91.3 million[65] - Adjusted diluted EPS for the thirteen weeks ended November 24, 2024, was $0.66, compared to $1.48 in the same period last year[61] - Diluted EPS for the twenty-six weeks ended November 24, 2024, was $0.64[65] Segment Performance - North America segment net sales declined 8% to $1,072.1 million in Q2 FY2025[16] - International segment net sales declined 6% to $528.8 million in Q2 FY2025[19] - North America segment net sales decreased by 8% to $1,072.1 million, with a 3% decline in price/mix and a 5% decline in volume[56] - International segment net sales decreased by 6% to $528.8 million, driven entirely by a 6% decline in volume[56] - North America segment Adjusted EBITDA decreased by 17% to $266.7 million[56] - International segment Adjusted EBITDA decreased by 53% to $47.4 million[56] - North America segment Adjusted EBITDA for the twenty-six weeks ended November 24, 2024, was $542.8 million[70] - International segment Adjusted EBITDA for the twenty-six weeks ended November 24, 2024, was $97.9 million[70] Cost and Expenses - Adjusted Gross Profit declined $134.9 million to $343.5 million in Q2 FY2025[12] - Restructuring expenses for the thirteen weeks ended November 24, 2024 totaled $74.6 million, primarily related to facility closures and employee severance[44] - Cost of sales for the thirteen weeks ended November 24, 2024 included $75.5 million in charges for unused raw potatoes and inventory write-offs[44] - The twenty-six weeks ended November 24, 2024 included a $39 million charge related to a voluntary product withdrawal[46] - Restructuring Plan expenses for the twenty-six weeks ended November 24, 2024, were $159.1 million[70] - Unallocated corporate costs for the twenty-six weeks ended November 24, 2024, were $(68.9) million[70] - Income tax expense for the twenty-six weeks ended November 24, 2024, was $64.2 million[65] - Interest expense for the twenty-six weeks ended November 24, 2024, was $88.5 million[65] Cash Flow and Liquidity - Net cash provided by operating activities for the first half of fiscal 2025 was $429.3 million, down $25.9 million versus the prior year period[22] - Capital expenditures during the first half of fiscal 2025 were $486.4 million, down $73.0 million versus the prior year period[23] - The Company had $79.0 million of cash and cash equivalents and $1,211.9 million of available liquidity under its revolving credit facility as of November 24, 2024[25] - Cash and cash equivalents increased to $79.0 million as of November 24, 2024 from $71.4 million as of May 26, 2024[50] - Net cash provided by operating activities was $429.3 million, slightly down from $455.2 million in the previous year[53] - Additions to property, plant, and equipment were $474.6 million, down from $507.6 million in the previous year[53] - Proceeds from short-term borrowings increased significantly to $811.6 million, compared to $194.3 million in the prior year[53] Shareholder Returns - The Company returned $103.3 million to shareholders through cash dividends and repurchased $82.0 million of its common stock in the first half of fiscal 2025[26] - The Board of Directors approved an increase of $250 million in the Company's share repurchase authorization, bringing the total to $750 million[27] - Repurchase of common stock and common stock withheld to cover taxes amounted to $92.8 million, down from $164.3 million in the previous year[53] Outlook and Targets - Updated fiscal 2025 outlook projects net sales of $6.35 billion to $6.45 billion[2] - The Company reduced its annual net sales target range to $6.35 billion to $6.45 billion, down from $6.6 billion to $6.8 billion[29] - The Company reduced its GAAP net income target range to $330 million to $350 million and Diluted EPS to $2.30 to $2.45[30] - The Company reduced its Adjusted EBITDA target range to $1,170 million to $1,210 million from approximately $1,380 million[31] - The Company reduced its Adjusted Net Income target range to $440 million to $460 million and Adjusted Diluted EPS to $3.05 to $3.20[32] - The Company expects cash used for capital expenditures, excluding acquisitions, to be approximately $750 million[33] Restructuring Plan - Restructuring Plan expected to generate $55 million in pre-tax cost savings in FY2025[7] - Restructuring expenses for the thirteen weeks ended November 24, 2024 totaled $74.6 million, primarily related to facility closures and employee severance[44] - Restructuring Plan expenses for the twenty-six weeks ended November 24, 2024, were $159.1 million[70] Volume and Traffic Trends - Volume declined 6% in Q2 FY2025, reflecting soft global restaurant traffic trends[9] - North America segment net sales decreased by 8% to $1,072.1 million, with a 3% decline in price/mix and a 5% decline in volume[56] - International segment net sales decreased by 6% to $528.8 million, driven entirely by a 6% decline in volume[56] Equity and Investments - Equity method investment earnings were $2.1 million in Q2 FY2025[21] Balance Sheet - Inventories increased to $1,327.2 million as of November 24, 2024 from $1,138.6 million as of May 26, 2024[50] - Long-term debt increased to $3,693.6 million as of November 24, 2024 from $3,440.7 million as of May 26, 2024[50] - Total assets increased to $7,452.1 million as of November 24, 2024 from $7,367.0 million as of May 26, 2024[50] Adjusted Metrics - Adjusted EBITDA for the twenty-six weeks ended November 24, 2024, was $571.8 million[70] - Gross profit for the twenty-six weeks ended November 24, 2024, was $633.8 million[65]

Lamb Weston Holdings, Inc. (LW) is facing pressure from JANA Partners, one of the company’s largest shareholders with more than 5% ownership. In the latest development, JANA Partners sent a letter to Lamb Weston, stressing that the latter needs major changes in its board and leadership. In the absence of any changes, JANA believes that LW should consider exploring strategic options, including a possible sale, to get the best value for its shareholders.Recent reports also suggested that Post Holdings (POST) ...

Lamb Weston (LW) shares rallied 6.8% in the last trading session to close at $79.27. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 7.7% loss over the past four weeks.Lamb Weston shares surged following reports that Post Holdings is exploring a potential deal with the Idaho based company. Apart from this, Lamb Weston has been benefiting from a favorable pricing environment and seeing strong results from its ...

Lamb Weston Holdings, Inc. (LW) is likely to register a decline in its top and bottom lines when it reports second-quarter fiscal 2025 earnings on Dec. 19. The Zacks Consensus Estimate for revenues is pegged at $1.7 billion, which suggests a decline of 3.5% from the prior-year quarter’s reported figure. The consensus mark for earnings has moved down a couple of cents in the past 30 days to $1.05 per share, indicating a decline of 27.6% from the year-ago quarter’s reported figure. LW has a trailing four-quar ...

Business: Lamb Weston is a global producer, distributor and marketer of value-added frozen potato products. The company is a supplier of frozen potato, sweet potato, appetizer and vegetable products to restaurants and retailers around the globe. Lamb Weston's frozen potato products are sold in North America and international markets generally to North American-based restaurant chains and international customers, comprised of global and regional quick service and full-service restaurant chains, food-service ...

A month has gone by since the last earnings report for Lamb Weston (LW) . Shares have added about 16% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Lamb Weston due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. LW Q1 Earnings Meet Estimates, Profit View Cut Amid D ...