Group 1 - The fundamental outlook for Lamb Weston Holdings (NYSE: LW) is considered poor, with no immediate catalysts to improve stock sentiment [1] - The investment approach emphasizes value investing principles and a focus on long-term growth, aiming to buy quality companies at a discount to their intrinsic value [1]

Group 1 - The investing group Ian's Insider Corner offers features such as a Weekend Digest, trade alerts, and direct access to Ian [1] - Ian Bezek, a former hedge fund analyst, specializes in high-quality compounders and growth stocks at reasonable prices, focusing on markets in Latin America and developed markets [4] Group 2 - Membership in Ian's Insider Corner includes access to initiation reports for new stocks, an active chat room, and weekly updates [3]

North America segment net sales, which includes all sales to customers in the U.S., Canada, and Mexico, declined $95.0 million, or 8%, to $1,072.1 million. Volume declined 5%, largely reflecting the impact of declining restaurant traffic in the U.S. and customer share losses in away-from-home channels. Price/mix declined 3%, due to planned investments in price and trade support across all sales channels to attract and retain volume, as well as unfavorable channel and product mix. International segment net s ...

Lamb Weston Holdings, Inc. (LW) posted dismal results for the second quarter of fiscal 2025, with the top and the bottom lines declining year over year. Quarterly net sales and earnings missed the Zacks Consensus Estimate. LW’s shares tumbled 21.7% in the premarket trading session today.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.LW’s bottom line came in at 66 cents, missing the Zacks Consensus Estimate of $1.02. The metric declined 54% due to reduced adjusted income from operatio ...

U.S. stocks traded higher midway through trading, with the S&P 500 gaining around 0.4% on Thursday.The Dow traded up 0.39% to 42,493.51 while the NASDAQ rose 0.39% to 19,468.70. The S&P 500 also rose, gaining, 0.38% to 5,894.42.Check This Out: Top 3 Consumer Stocks You May Want To Dump This QuarterLeading and Lagging SectorsUtilities shares rose by 1.1% on Thursday.In trading on Thursday, health care shares fell by 0.9%.Top HeadlineThe U.S. economy grew by an annualized rate of 3.1% in the third quarter com ...

Shares of Lamb Weston (LW -21.70%) -- North America's largest potato producer -- were sliding again after it delivered third-quarter results before the start of Thursday trading that missed estimates, offered weak guidance, and said it was replacing its CEO.As of 11:37 a.m. ET, the stock was down 21.2% on the news. Lamb Weston's problems are multiplyingLamb Weston's revenue in the quarter fell by 8% year over year to $1.6 billion, which missed the consensus estimate of $1.67 billion. The underperformance ca ...

Financial Data and Key Metrics - Net sales declined by 8% compared to the prior year quarter, with volume declining 6% and price-mix declining 2% [12][13] - Adjusted EBITDA fell by $95 million to $282 million, primarily due to a $135 million decline in adjusted gross profit [19] - North America segment sales declined by 8%, with volume down 5% and price-mix down 3% [15][17] - International segment sales declined by 6%, with volume down 6% and price-mix flat [17][18] - The company ended the quarter with $80 million in cash and $1.2 billion available under its revolving credit facility, with net debt at $4 billion and a leverage ratio of 3.4x [23][24] Business Line Performance - North America segment faced volume declines due to reduced restaurant traffic and customer share losses, particularly in food-away-from-home channels [15] - International segment experienced volume declines due to softening restaurant traffic in key markets like Germany, France, and Spain, as well as competitive pressures in the Middle East and Asia Pacific [17][18] - The company exited lower-priced and lower-margin business in EMEA, which contributed to volume declines but will no longer be a headwind moving forward [18] Market Performance - U S restaurant traffic declined by about 2% year-over-year, with QSR traffic declining by 1 5% [15] - In Europe, restaurant traffic was flat in the UK but declined in Germany, France, and Spain, while Japan saw QSR traffic growth decelerate [17][18] - China's restaurant traffic growth remained soft, and the Middle East and Asia Pacific faced intense competition, leading to customer share losses [18] Strategic Direction and Industry Competition - The company is evaluating opportunities to reduce manufacturing and supply chain costs, improve sales execution, and expand its total addressable market by leveraging proprietary technologies [10] - Competitors have announced plans to add over 3 5 billion pounds of capacity between 2024 and 2027, primarily in Europe, China, and Brazil, which could lead to industry capacity utilization dropping to the mid-to-high 80s [30][31][33] - The company has implemented a restructuring plan to address the supply-demand imbalance, targeting $55 million in cost savings for fiscal 2025 and $85 million in annualized savings by fiscal 2026 [34] Management Commentary on Operating Environment and Outlook - The company expects the challenging operating environment to persist due to weak restaurant traffic trends and increased industry capacity [10] - Management revised its fiscal 2025 net sales target to $6 35 billion to $6 45 billion, down from the previous range of $6 6 billion to $6 8 billion, and adjusted EBITDA target to $1 17 billion to $1 21 billion, down from $1 38 billion [38][39] - The company anticipates higher volume growth in the second half of the year, driven by international and North America segments, but expects price-mix to decline due to competitive pressures [44][45] Other Important Information - The company announced a $250 million increase to its share repurchase authorization, bringing the total available under the program to $560 million [53] - A quarterly dividend increase of $0 01 per share was declared, bringing the dividend to $0 37 per share [54] - The company expects capital expenditures to decline significantly in the second half of fiscal 2025, targeting total annual capital expenditures of $750 million [49] Q&A Summary Question: Structural EBITDA Margin in Light of Industry Capacity - The company expects normalized EBITDA margins to be in the range of 19% to 20% in the short to medium term, assuming all announced capacity expansions come online [63][64] Question: Competitor Actions on Capacity - Management believes competitors are also evaluating the industry dynamics but has not yet seen similar actions to curtail production or close facilities [67][68] Question: International Business Pressures - In Europe, pricing pressure is driven by a better-than-expected potato crop, while in Asia, competitive dynamics and ERP-related challenges have impacted customer share [74][75] Question: Gross Margin Deleverage - Production inefficiencies and unplanned downtime contributed to lower gross margins, but improvements are expected as the new Chief Supply Chain Officer implements cost-saving initiatives [79][80] Question: Customer Losses and Pricing - Customer losses were primarily due to competitive pricing, with no significant service-related issues [84] Question: Share Repurchase Aggressiveness - The company plans to opportunistically repurchase shares as free cash flow increases in the second half of the year [86] Question: Activist Investor Concerns - Management declined to comment on potential board changes or the possibility of a sale, focusing instead on the earnings outlook and leadership transition [91] Question: Demand Trends and GLP-1 Impact - Weak consumer demand is attributed to inflation and reduced restaurant traffic, with no significant impact observed from GLP-1 weight loss drugs [117][118] Question: New TAM Opportunities - The company is exploring opportunities with non-traditional customers, such as those not previously offering fries or tater tots, but did not provide specific volume potential [122] Question: Capacity Utilization and Industry Slack - The company's utilization rate is in line with industry standards in the low 90s, with improvements expected as production inefficiencies are addressed [126][127] Question: Inventory Levels - Inventory levels are typically elevated in Q2 and Q3 due to potato harvests, with reductions expected as the year progresses [149] Question: Leverage Target - The company maintains its leverage target of 3 5x, with no changes despite increased buybacks and dividends [153]

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 ...