Will Lamb Weston (LW) Top Estimates in Q4 Earnings Release?

Core Viewpoint - Lamb Weston Holdings, Inc. is expected to report growth in both revenue and earnings for the fourth quarter of fiscal 2024, with revenue estimates at $1.7 billion and earnings per share at $1.24, reflecting year-over-year increases [1][2]. Revenue and Earnings Estimates - The Zacks Consensus Estimate for fourth-quarter revenues is $1.7 billion, indicating a 0.8% growth from the previous year [1]. - For fiscal 2024, the revenue estimate stands at $6.6 billion, suggesting a significant growth of 22.7% year-over-year [1]. - The consensus for quarterly earnings is $1.24 per share, which is a 1.6% increase from the prior year's figure [2]. - The fiscal 2024 earnings estimate is $5.53 per share, reflecting an 18.2% increase from the previous year [2]. Growth Drivers - Lamb Weston is benefiting from effective pricing strategies and strong operational momentum, which are contributing to top-line growth [3]. - Management anticipates net sales for the fourth quarter to be between $1.69 billion and $1.75 billion, supported by improved price/mix [3]. - For fiscal 2024, net sales are expected to range from $6.54 billion to $6.60 billion, indicating year-over-year growth [3]. - The company projects a price/mix increase of 5.4% for the fourth quarter and 10.3% for fiscal 2024 [3]. Operational Enhancements - Lamb Weston is focused on improving supply chain efficiency, expanding globally, enhancing manufacturing capabilities, and improving product quality, which are key growth drivers [4]. - The company's efforts to expand capacity and enhance product offerings have positioned it well to meet rising demand for snacks and fries [4]. EBITDA and Earnings Projections - For fiscal 2024, adjusted EBITDA is expected to be between $1,480 million and $1,510 million, compared to $1,124.3 million in fiscal 2023 [5]. - Quarterly adjusted EBITDA is projected to be in the range of $350 million to $375 million, up from $309.9 million reported in the same quarter last year [5]. - Adjusted earnings per share for fiscal 2024 are anticipated to be between $5.50 and $5.65, reflecting year-over-year growth [5]. Volume Challenges - Management expects a mid-single-digit volume decline in the upcoming quarter due to soft restaurant traffic trends in North America and key international markets [6]. - The transition to a new enterprise resource planning system is also anticipated to impact volumes for some customers in North America, with a projected volume decline of 4.2% for the quarter [6]. - Rising selling, general, and administrative expenses are expected to pose additional challenges [6]. Earnings Prediction Model - The current model does not predict an earnings beat for Lamb Weston, as it has a Zacks Rank of 4 (Sell) and an Earnings ESP of -1.61% [7][8].