Core Insights - Lamb Weston Holdings, Inc. is set to release its third-quarter earnings results on April 3, with analysts expecting earnings of 87 cents per share, a decrease from $1.2 per share in the same quarter last year [1] - The company projects quarterly revenue of $1.49 billion, slightly up from $1.46 billion a year earlier [1] - A quarterly dividend of 37 cents per share was declared on March 20 [1] Stock Performance - Lamb Weston shares increased by 1.6%, closing at $54.15 on Wednesday [2] Analyst Ratings - Barclays analyst Lauren Lieberman maintains an Overweight rating, reducing the price target from $87 to $60 [5] - Stifel analyst Matthew Smith holds a Hold rating, lowering the price target from $80 to $68 [5] - Jefferies analyst Rob Dickerson keeps a Buy rating, raising the price target from $80 to $95 [5] - JP Morgan analyst Ken Goldman maintains a Neutral rating, increasing the price target from $68 to $78 [5] - Deutsche Bank analyst Steve Powers initiates coverage with a Hold rating and a price target of $81 [5]

Core Viewpoint - Lamb Weston Holdings, Inc. is expected to report a decline in its earnings for the third quarter of fiscal 2025, with a consensus estimate of 87 cents per share, reflecting a 27.5% decrease from the previous year [1] Financial Performance - The Zacks Consensus Estimate for Lamb Weston's quarterly revenues is projected at $1.50 billion, indicating a year-over-year growth of 2.9% [2] - Adjusted EBITDA is anticipated to reach $305.7 million, representing an 11% decline for the upcoming quarter [4] Challenges and Market Conditions - The company is facing challenges such as sluggish restaurant traffic, customer share losses, and overcapacity in the global market, which are negatively impacting volume performance [3] - Increased manufacturing costs due to input cost inflation, particularly in raw potato prices, along with higher transportation and warehousing expenses, are exerting additional pressure on the company [4] Strategic Initiatives - Despite the challenges, Lamb Weston is seeing positive outcomes from its Restructuring Plan aimed at improving efficiency and profitability [5] - The company is modernizing its manufacturing capabilities to optimize operations further, which is expected to have a favorable impact on the upcoming quarter [5] Earnings Expectations - The current model does not predict an earnings beat for Lamb Weston, with a Zacks Rank of 4 (Sell) and an Earnings ESP of -3.60% [6]

The market expects Lamb Weston (LW) to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended February 2025. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on April 3, 2025, might help the stock move higher if these key numbers are be ...

Core Insights - Lamb Weston is experiencing pressure as its profit margins are significantly lower despite an increase in revenue, indicating potential challenges in maintaining profitability [1]. Financial Performance - The company is achieving higher revenue but is facing significantly lower margins, suggesting inefficiencies or increased costs that are impacting overall profitability [1]. Market Position - There is uncertainty regarding the company's ability to recover from its current financial challenges, raising questions about its competitive position in the market [1].

Lamb Weston Holdings, Inc. (LW) , a leading supplier of frozen potato products, is facing significant challenges that are negatively impacting its performance. Overcapacity in the global market, declining restaurant traffic and escalating manufacturing costs are putting pressure on its growth. As a result, the company’s top and bottom lines declined year over year and missed the Zacks Consensus Estimate in second-quarter fiscal 2025.Over the past three months, LW stock has slumped by 33.5%, underperforming ...

If you like to see more ideas, please subscribe to the premium service "Value in Corporate Events" here and try the free trial. In this service we cover major earnings events, M&A, IPOs and other significant corporate events with actionable ideas. Furthermore, we provide coverage of situations and names on request!In the summer of 2023 I warned investors in Lamb Weston (NYSE: LW ) to not get fried as I was concerned about high earnings multiples awarded to the business, just when margins were coming in atAs ...

Company Performance - Lamb Weston Holdings, Inc. has seen an 18.5% decline in its share price over the past six months, which is significantly worse than the 2.3% decline in its industry and the 1.5% decline in the broader Zacks Consumer Staple sector [1] - The company's second-quarter fiscal 2025 results fell below expectations, with top and bottom lines declining year over year and missing the Zacks Consensus Estimate [4][10] - The quarterly volume decreased by 6%, attributed to weak global restaurant traffic trends and customer share losses, with North America segment volume falling by 5% and International segment volume dropping by 6% [5] Challenges Faced - Lamb Weston is facing challenges such as declining global restaurant traffic, increased competition, overcapacity in the global market, and rising manufacturing costs [2][3] - The company has experienced incremental customer share losses in both North American and International segments due to a competitive landscape, particularly in the Middle East and parts of Asia Pacific [3] - Increased manufacturing costs per pound have been driven by input cost inflation, particularly higher raw potato prices, inefficiencies, and increased transportation and warehousing costs [8] Financial Outlook - Management has revised its annual net sales target range to $6.35-$6.45 billion, down from the previous range of $6.6 billion to $6.8 billion [10] - Adjusted net income guidance has been lowered to $440-$460 million, with adjusted earnings per share (EPS) revised to $3.05 to $3.20 for fiscal 2025, compared to earlier estimates of $600 million to $615 million and adjusted EPS of $4.15 to $4.35 [10] - The company anticipates that challenging conditions will persist through the remainder of fiscal 2025 and into fiscal 2026, driven by continued softening in global frozen potato demand [9]

Core Insights - Jana Partners is advocating for significant changes at Lamb Weston, including a board overhaul or a potential sale of the company [1] - The activist investor has gained support from former executives, including Jeffery DeLapp, who holds 458 voting shares [1] - Lamb Weston has faced challenges, reporting an unexpected loss and cutting its guidance due to declining demand for frozen potatoes [1] Company Developments - Lamb Weston recently replaced its CEO, with COO Michael J. Smith set to take over on January 3 [1] - The company has seen its shares decline by more than a third this year, despite a recent 4% increase following Jana's actions [1] - Jana Partners holds over a 5% stake in Lamb Weston and has aligned with six food-industry executives to challenge the board [1] Financial Performance - Lamb Weston reported a loss in its second-quarter 2025 financial results, which prompted criticism from Jana Partners [1] - The company cited softening demand for frozen potatoes, which is expected to continue into 2026 [1] - Jana described the financial results as "disastrous" and criticized the board for failing to act in the best interests of shareholders [1]

Core Viewpoint - Lamb Weston Holdings, Inc. is facing significant challenges in the frozen potato industry, leading to a weaker-than-expected performance in its second-quarter fiscal 2025 and a lowered financial outlook for the remainder of the fiscal year [1][10]. Group 1: Market Challenges - The company is experiencing a decline in global restaurant traffic, increased competition, overcapacity in the market, and rising manufacturing costs [3][10]. - Lamb Weston reported a 6% decline in quarterly volume due to weak global restaurant traffic and customer share losses, with North America segment volume falling by 5% and International segment volume dropping by 6% [7]. - The company's price/mix decreased by 2% due to competitive pressures and unfavorable channel and product mix [4]. Group 2: Financial Performance - In the second quarter of fiscal 2025, Lamb Weston’s adjusted gross profit decreased by $134.9 million to $343.5 million, attributed to increased manufacturing costs, unfavorable price/mix, and reduced sales volumes [8]. - The company has revised its annual net sales target range to $6.35-$6.45 billion, down from $6.6 billion to $6.8 billion, reflecting heightened competitive pressures and challenges in both International and North America segments [11]. - Adjusted net income guidance has been lowered to $440-$460 million, with adjusted earnings per share revised to $3.05 to $3.20, down from previous estimates of $600 million to $615 million and $4.15 to $4.35, respectively [11]. Group 3: Future Outlook - Lamb Weston anticipates that challenging conditions will persist through fiscal 2025 and into fiscal 2026, driven by continued softening in global frozen potato demand and accelerated capacity additions [10]. - The company is implementing a restructuring plan to improve operating efficiency and profitability, but faces an uncertain future due to weak demand and rising costs [15].

Core Insights - The performance of Lamb Weston (LW) in international markets is crucial for assessing its financial resilience and growth prospects [2][3] - The company's total revenue for the quarter was $1.6 billion, a decrease of 7.6% from the previous year [4] Revenue Breakdown - North America contributed 66.97% of total revenue, amounting to $1.07 billion, which was a surprise decrease of 3.25% compared to analyst expectations [5] - International revenue was $528.8 million, accounting for 33.03% of total revenue, also below expectations by 6.49% [6] Future Projections - Analysts expect total revenue for the current fiscal quarter to be $1.55 billion, reflecting a 6.1% increase from the previous year, with North America and International expected to contribute 66.8% and 36.9% respectively [7] - For the full year, total revenue is projected at $6.49 billion, a slight increase of 0.3% from the prior year, with North America and International expected to account for 68.2% and 34.4% respectively [8] Conclusion - Lamb Weston's reliance on international markets presents both opportunities and risks, making it essential to monitor international revenue trends for future forecasts [9][10]