Lamb Weston Gears Up for Q2 Earnings: Here's What You Should Know

Core Viewpoint - Lamb Weston Holdings, Inc. is expected to report a decline in both revenue and earnings for the second quarter of fiscal 2025, with revenue estimated at $1.7 billion, reflecting a 3.5% decrease year-over-year, and earnings per share projected at $1.05, indicating a 27.6% decline from the previous year [1] Group 1: Financial Performance Expectations - The Zacks Consensus Estimate for Lamb Weston’s revenues is $1.7 billion, suggesting a decline of 3.5% from the prior-year quarter [1] - The consensus estimate for earnings has decreased to $1.05 per share, indicating a decline of 27.6% from the year-ago quarter [1] - The company has a trailing four-quarter negative earnings surprise of almost 12% on average [1] Group 2: Operational Factors - Lamb Weston is benefiting from a strong pricing environment and positive results from its Restructuring Plan aimed at enhancing efficiency and profitability [3] - The company is modernizing its manufacturing capabilities to optimize operations and expand capacity to meet increasing demand [3] - Despite these efforts, Lamb Weston is facing lower volumes due to customer share losses and reduced restaurant traffic, with a predicted volume decline of 2.3% for the fiscal second quarter [4] Group 3: Earnings Prediction Insights - 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 -5.71% [5][7] - The combination of a positive Earnings ESP and a Zacks Rank of 1, 2, or 3 typically increases the odds of an earnings beat, which is not applicable in this case [5]