Lamb Weston's Q1 Earnings Beat Estimates, Volume Rises 6% Y/Y

Core Insights - Lamb Weston Holdings, Inc. reported solid first-quarter fiscal 2026 results, with both net sales and earnings exceeding the Zacks Consensus Estimate, although earnings decreased compared to the previous year [1][11] Financial Performance - Adjusted earnings were 74 cents per share, surpassing the Zacks Consensus Estimate of 54 cents, but represented a 5% decrease due to higher income tax expenses and reduced equity method investment earnings [2] - Net sales reached $1,659.3 million, beating the Zacks Consensus Estimate of $1,616 million, with a year-over-year increase of $5.2 million [2] - On a constant-currency basis, sales dipped 1%, with a 6% volume growth offset by a 7% decline in price/mix [3] Segment Analysis - North America segment net sales decreased by 2% to $1,084.6 million, despite a 5% volume increase driven by customer contract wins [7] - International segment net sales grew by 4% to $574.7 million, aided by a favorable $24.5 million from foreign currency translation, with volume growth of 6% [9] Profitability Metrics - Adjusted gross profit fell by $14.2 million year-over-year to $338.9 million, primarily due to weaker price/mix [5] - Adjusted EBITDA increased by $2.8 million year-over-year to $302.2 million, driven by reduced SG&A expenses [6] Shareholder Returns - The company returned $51.7 million to shareholders through cash dividends and repurchased 187,259 shares for $10.4 million, with approximately $348 million remaining for future repurchases [13] Future Outlook - For fiscal year 2026, the company expects net sales at constant currency to range between $6.35 billion and $6.55 billion, with adjusted EBITDA projected between $1.00 billion and $1.20 billion [14]