Lamb Weston (LW) Tops Q3 Earnings and Revenue Estimates

Core Viewpoint - Lamb Weston reported quarterly earnings of $1.10 per share, exceeding the Zacks Consensus Estimate of $0.87 per share, but down from $1.20 per share a year ago, indicating a 26.44% earnings surprise [1] Financial Performance - The company posted revenues of $1.52 billion for the quarter ended February 2025, surpassing the Zacks Consensus Estimate by 1.36% and showing an increase from $1.46 billion year-over-year [2] - Over the last four quarters, Lamb Weston has exceeded consensus EPS estimates only once [2] Stock Performance - Lamb Weston shares have declined approximately 19% since the beginning of the year, compared to a 3.6% decline in the S&P 500 [3] - The current Zacks Rank for Lamb Weston is 4 (Sell), indicating expected underperformance in the near future [6] Earnings Outlook - The consensus EPS estimate for the upcoming quarter is $0.83 on revenues of $1.61 billion, and for the current fiscal year, it is $3.09 on revenues of $6.37 billion [7] - The trend for estimate revisions ahead of the earnings release was unfavorable, which may impact future stock performance [6] Industry Context - The Food - Miscellaneous industry, to which Lamb Weston belongs, is currently ranked in the bottom 21% of over 250 Zacks industries, suggesting potential challenges for stock performance [8] - Another company in the same industry, Post Holdings, is expected to report quarterly earnings of $1.19 per share, reflecting a year-over-year decline of 21.2% [9]