Eagle, Idaho-based Lamb Weston Holdings, Inc. (LW) is a food processing company that specializes in frozen potato products. Valued at a market cap of $8.3 billion, the company is one of the world’s largest producers and distributors of frozen french fries and other value-added potato products, serving restaurants, quick-service chains, foodservice operators, and retail customers.  It is scheduled to announce its fiscal Q2 earnings for 2026 before the market opens on Friday, Dec. 19. Before this event, an ...

Core Insights - Lamb Weston Holdings, Inc. is expected to report quarterly earnings on December 19, 2025, with an anticipated EPS of $0.67 and revenue of approximately $1.59 billion, indicating a slight revenue dip of 0.5% year-over-year but a 1.5% growth in EPS [1][2][6] Financial Performance - The company has shown an average earnings surprise of 36.49% over the past two quarters and a consistent history of surpassing earnings expectations with an average surprise of 16% over the last four quarters [1][3] - The price-to-earnings (P/E) ratio is approximately 28.20, indicating strong investor confidence, while the price-to-sales ratio is about 1.28 and the enterprise value to sales ratio stands at 1.89 [4] - The enterprise value to operating cash flow ratio is approximately 13.68, reflecting a robust valuation to cash flow connection [5] Debt and Liquidity - The debt-to-equity ratio is around 2.23, showcasing effective debt management, and the current ratio of 1.49 indicates the company's ability to meet short-term liabilities with its short-term assets [5][6]

Core Insights - Lamb Weston Holdings, Inc. is expected to report a revenue decline of 0.5% year-over-year for Q2 fiscal 2026, with revenues estimated at $1.59 billion [1][10] - The earnings consensus has slightly decreased to 67 cents per share, reflecting a 1.5% increase from the previous year [2][10] Revenue and Earnings Forecast - The revenue forecast for Lamb Weston indicates a 0.5% decline compared to the same quarter last year, while earnings per share are projected to increase by 1.5% [1][10] - The North America segment is anticipated to see a 3.2% year-over-year decline, whereas the International segment is expected to grow by 5.9% [5] Market Dynamics - The company is facing challenges from unfavorable price/mix dynamics, with a forecasted 5.4% decline in price/mix for Q2 fiscal 2026 [3] - Competitive pressures in international markets, including strong potato crops and softer demand in regions like Europe and Latin America, are contributing to aggressive pricing behavior [4] Operational Developments - Despite current challenges, Lamb Weston is benefiting from its Restructuring Plan aimed at enhancing efficiency and profitability [6] - The modernization of manufacturing capabilities is expected to optimize operations and positively impact the upcoming quarter's performance [6] Earnings Prediction - The current model does not predict an earnings beat for Lamb Weston, as it holds a Zacks Rank of 4 (Sell) and an Earnings ESP of +0.45% [7]

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Core Insights - Lamb Weston is positioned to continue its earnings-beat streak, having a strong history of surpassing earnings estimates, particularly in the last two quarters with an average surprise of 36.49% [1] Earnings Performance - For the most recent quarter, Lamb Weston reported earnings of $0.74 per share, exceeding the expected $0.54 per share, resulting in a surprise of 37.04% [2] - In the previous quarter, the company reported $0.87 per share against an expectation of $0.64 per share, achieving a surprise of 35.94% [2] Earnings Estimates and Predictions - Recent estimates for Lamb Weston have been increasing, with a positive Earnings ESP of +0.45%, indicating bullish sentiment among analysts regarding its near-term earnings potential [5][8] - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a high likelihood of another earnings beat, with historical data showing that such combinations lead to positive surprises nearly 70% of the time [6][8] Earnings ESP Explanation - The Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions, which may be more accurate than earlier predictions [7]

Core Viewpoint - Lamb Weston Holdings, Inc. is a mid-cap food company with a market cap of $8.3 billion, specializing in frozen potato products and serving various sectors including restaurants and foodservice institutions [1][2]. Financial Performance - For Q1 2026, Lamb Weston reported an adjusted EPS of $0.74 and net sales of $1.66 billion, exceeding estimates [5]. - The company experienced a 6% volume growth, improved cost savings, and lower SG&A expenses, leading to a positive full-year outlook with projected net sales of $6.35 billion to $6.55 billion and adjusted EBITDA of $1 billion to $1.20 billion [5]. Stock Performance - Lamb Weston shares have decreased by 28.1% from their 52-week high of $83.98 and are down 9.6% year-to-date, underperforming the Consumer Staples Select Sector SPDR Fund (XLP), which has risen by 1.4% [3][4]. - Over the past 52 weeks, Lamb Weston shares have declined by 23.8%, while XLP has only dropped by 2.9% [4]. - Despite the stock's recent performance, it has risen by 7.7% over the past three months, outperforming XLP's marginal gain [3]. Analyst Sentiment - Analysts maintain a moderately optimistic outlook for Lamb Weston, with a consensus rating of "Moderate Buy" from 12 analysts and a mean price target of $65.27, indicating an 8.6% premium to current levels [6].

EAGLE, Idaho--(BUSINESS WIRE)--Lamb Weston Holdings, Inc. (NYSE: LW) announced today it will report fiscal 2026 second quarter financial results on December 19, 2025. The news release will be issued at approximately 8:30 a.m. ET, followed by a conference call at 10:00 a.m. ET. The webcast and accompanying materials will be available on Lamb Weston's Investor Relations page at https://investors.lambweston.com/events-and-presentations. Alternatively, participants in the U.S. and Canada may access. ...

Core Insights - Wall Street continues its strong performance in 2025, but the consumer staples sector is lagging, with the Consumer Staples Select Sector SPDR (XLP) down 1.7% year to date, the only sector in the S&P 500 Index in the red [1][2][8] Consumer Staples Sector Overview - The consumer staples sector is facing challenges due to rising living costs, which are impacting household budgets and leading to cautious consumer spending, resulting in margin compression [2] - Despite the overall sector's poor performance, five consumer staples stocks are highlighted for their potential to perform well in 2026: PepsiCo Inc. (PEP), Monster Beverage Corp. (MNST), Lamb Weston Holdings Inc. (LW), United Natural Foods Inc. (UNFI), and Ollie's Bargain Outlet Holdings Inc. (OLLI) [3][8] Company-Specific Insights PepsiCo Inc. (PEP) - PepsiCo, with a Zacks Rank of 2, is benefiting from strong beverage performance in international markets, particularly in Mexico, Brazil, Germany, and Thailand [6] - The company is focused on localizing flavors, expanding price-pack options, and enhancing productivity through digital transformation, with expected revenue and earnings growth rates of 3.3% and 5.6% for next year [7][9] Monster Beverage Corp. (MNST) - Monster Beverage, ranked 1, is capitalizing on the expanding energy drinks market, with a 16% sales growth in its energy drinks segment in Q3 2025 [10][11] - The company has expected revenue and earnings growth rates of 9.3% and 12.8%, respectively, for next year, supported by improving margins and easing supply-chain pressures [11] Lamb Weston Holdings Inc. (LW) - Lamb Weston, also ranked 1, is driving growth through its "Focus to Win" strategy, emphasizing operational efficiency and innovation [12] - The company expects a 4.1% volume increase year over year in fiscal 2026, with revenue and earnings growth rates of 1.3% and -6.3% for the current year [13] United Natural Foods Inc. (UNFI) - United Natural Foods, ranked 1, is showing strong growth driven by demand for natural and organic products, with strategic initiatives enhancing efficiency and service quality [14][15] - The company has an expected revenue growth rate of 2.5% and over 100% earnings growth for the current year, with a significant 24.2% improvement in earnings estimates over the last 60 days [16] Ollie's Bargain Outlet Holdings Inc. (OLLI) - Ollie's, with a Zacks Rank of 2, is leveraging a cost-effective business model and strategic investments to support growth, expecting a 16.3% revenue increase and 16.2% adjusted earnings per share improvement in fiscal 2025 [17][18] - The company plans to expand its store network significantly, aiming for over 1,300 stores, with a consistent CAGR of 9.5% from fiscal 2020 to fiscal 2024 [19][20]

Industry Overview - The Zacks Food-Miscellaneous industry is experiencing challenges due to inflation, cautious consumer spending, and soft foodservice demand, leading to volume pressures and increased competition from private labels [1][4] - Companies in this industry manufacture and sell a variety of food products, including cereals, sauces, bakery items, and organic foods, primarily through wholesalers, retailers, and foodservice channels [3] Market Trends - The food industry is under pressure from sticky inflation and cautious consumer spending, resulting in a shift towards value offerings and private-label products [4] - Companies are responding to these challenges by enhancing value-driven marketing, promotions, and offering affordable pack sizes to maintain market share [4] Cost and Margin Management - Cost inflation is impacting profitability, with persistent volatility in input costs, labor, and packaging compressing margins despite previous pricing actions [5] - Companies are focusing on productivity initiatives, including supply-chain optimization and manufacturing efficiency, to improve cost leverage and recover margins [5] Brand and Innovation - Strong brand equity is crucial in a competitive market, with leading companies investing in health-forward product development to meet evolving consumer preferences [6] - Demand for high-protein, low-sugar, and functional nutrition products is driving innovation and portfolio modernization, which helps strengthen customer loyalty and enhance pricing power [6] Industry Performance - The Zacks Food-Miscellaneous industry ranks 185, placing it in the bottom 23% of over 250 Zacks industries, indicating weak near-term prospects [7][8] - The industry has underperformed the S&P 500, declining 17.5% over the past year compared to the S&P 500's growth of 16.7% [9] Valuation - The industry is currently trading at a forward 12-month price-to-earnings (P/E) ratio of 14.65X, lower than the S&P 500's 23.74X and the sector's 16.49X [12] Company Highlights - **Lamb Weston**: This company has a Zacks Rank of 1 (Strong Buy) and is focusing on operational efficiency and customer engagement, with a 9.4% increase in EPS estimates to $3.14 [15][16] - **United Natural Foods**: Also a Zacks Rank 1 company, it is experiencing growth in its natural segment, with a 9% increase in the fourth quarter of fiscal 2025 and a rise in EPS estimates from $1.53 to $1.90 [19][20] - **The J.M. Smucker**: This Zacks Rank 2 company is leveraging its diverse brand portfolio and strong coffee unit, with a slight increase in EPS estimates to $9.13 [21][22]