JPMorgan Says Lamb Weston May Top Estimates, But Stock Gains Limit Upside

Core Viewpoint - Lamb Weston Holdings Inc is under pressure to adapt to fluctuating costs and shifting consumer demands, with investors closely monitoring earnings reports for signs of resilience and growth potential [1] Group 1: Earnings Expectations - The company is expected to report an earnings beat for the first quarter of fiscal 2026, driven by gross margin improvements, with current estimates for the fiscal second quarter considered "too low" by JPMorgan [2] - Lamb Weston achieved earnings beats of 25% in the third and fourth quarters of fiscal 2025, which contributed to a 10% increase in stock price [2] Group 2: Stock Performance - The stock has risen by 13% over the past two months, indicating that the potential upside for the first quarter may already be partially reflected in the current share price [3] - At the time of publication, Lamb Weston shares were up 2.39% at $57.43, trading within a 52-week range of $47.87 to $83.98 [4] Group 3: Margin Pressures - Despite positive indicators, the company may still face margin pressures, particularly with price concessions expected for one-third of customer contracts that will be renegotiated for calendar year 2026 [3] - The worst headwinds to Lamb Weston Holdings' sales and margins appear to be behind the company [3]