Core Insights - Lamb Weston Holdings, Inc. reported solid second-quarter fiscal 2026 results, with both net sales and earnings exceeding the Zacks Consensus Estimate, although earnings decreased compared to the previous year [2][10] Financial Performance - Adjusted earnings were 69 cents per share, surpassing the Zacks Consensus Estimate of 67 cents, but represented a 5% decrease year-over-year due to reduced adjusted gross profit [2][10] - Net sales reached $1,618.1 million, exceeding the Zacks Consensus Estimate of $1,593 million, and increased by $17.2 million year-over-year [3][10] Sales and Volume Analysis - On a constant-currency basis, sales were flat, with an 8% volume growth offset by an 8% decline in price/mix, driven by customer wins and share gains, particularly in North America and Asia [4] - The North America segment's net sales were flat at $1,069.5 million, with an 8% volume increase driven by customer contract wins, while the price/mix fell 8% [7] - The International segment's net sales grew 4% to $548.6 million, with a 7% volume increase, but a decline in price/mix by 8% [9] Profitability Metrics - Adjusted gross profit fell by $15.6 million year-over-year to $327.9 million, primarily due to weaker price/mix [5] - Adjusted EBITDA decreased by $8.5 million year-over-year to $285.7 million, attributed to reduced adjusted gross profit and equity method investment earnings [6] Segment Performance - North America segment adjusted EBITDA increased by $18.6 million to $287.8 million, driven by higher volumes and reduced manufacturing costs [8] - International segment adjusted EBITDA decreased by $21.4 million to $27.2 million, mainly due to elevated manufacturing costs [11] Financial Health - The company ended the quarter with cash and cash equivalents of $82.7 million and long-term debt of $3,648.9 million [12] - Lamb Weston returned $51.6 million to shareholders through dividends and repurchased $39.6 million of common stock [13] Future Outlook - The company expects net sales at constant currency to be between $6.35 billion and $6.55 billion and adjusted EBITDA to be between $1.00 billion and $1.20 billion for fiscal 2026 [15]

Core Insights - Conagra Brands, Inc. (CAG) reported a decline in both earnings and sales for the second quarter of fiscal 2026, reflecting a challenging consumer environment and lower volumes, partially offset by productivity gains and strong performance in certain growth categories [1] Financial Performance - Adjusted earnings per share (EPS) for the quarter were 45 cents, exceeding the Zacks Consensus Estimate of 44 cents, but down 35.7% year over year due to lower adjusted operating profit [2] - Net sales decreased by 6.8% year over year to $2,979.1 million, missing the Zacks Consensus Estimate of $2,990 million, with a 3.9% headwind from M&A and a 3% decline in organic net sales [3][11] - Organic net sales fell 3% due to a 3% decline in volume, while price/mix remained flat, with management noting a 100-basis-point headwind from retailer purchasing patterns [4][11] - Adjusted gross profit declined 17.1% to $698 million, with adjusted gross margin contracting 292 basis points to 23.4% [5] Segment Performance - Grocery & Snacks segment net sales fell 8.5% year over year to $1,209 million, impacted by a 7.0% adverse M&A effect and a 1.5% decline in organic net sales [6] - Refrigerated & Frozen segment net sales decreased by 6.5% to $1,251 million, with a 5.1% drop in organic net sales [7] - International segment sales declined 5.4% to $230 million, reflecting a 4.1% M&A impact and a 2.9% fall in organic net sales [8] - Foodservice sales decreased 1.3% to $288 million, with organic performance reflecting a 4.2% benefit from price/mix, offset by a 4.0% volume decline [9] Financial Health - In the first half of fiscal 2026, Conagra generated net cash from operating activities of $331 million, with capital expenditures totaling $219 million, resulting in free cash flow of $113 million [12] - The company ended the second quarter with net debt of $7.6 billion and paid a dividend of 35 cents per share [12] Future Outlook - Conagra reiterated its fiscal 2026 outlook, projecting organic net sales to range from a decline of 1% to growth of 1% compared to fiscal 2025, with adjusted EPS anticipated between $1.70 and $1.85 [13] - The outlook factors in continued elevated inflation in the cost of goods sold, with core inflation expected to be slightly above 4% [14] - Total cost of goods sold inflation is projected at approximately 7%, with measures expected to raise costs by roughly 3% annually before mitigation efforts [15]

Core Insights - Shares of Lamb Weston (NYSE: LW) fell 22% after disappointing earnings, marking a 60% decline from its all-time high in 2023 and reaching the lowest share price since 2017 [1] Financial Performance - In Q2, Lamb Weston reported a 1% increase in sales and adjusted earnings per share of $0.69, surpassing Wall Street expectations [2] - Full-year guidance indicated flat revenue year-over-year and an 11% decline in adjusted EBITDA at the midpoint, which alarmed the market [2] Sales and Pricing Dynamics - Sales volume increased by 8% in North America and 7% internationally, but an 8% drop in pricing mix in both markets offset these gains [3] - The company is facing challenges due to strong potato crops and ongoing weakness in the quick-service restaurant sector [3] Operational Challenges - Lamb Weston is ramping up production at a new processing plant in Argentina, impacting EBITDA and free cash flow generation [4] - Management anticipates cost savings of $100 million by 2026 and $250 million by 2028, but the current guidance for declining adjusted EBITDA disappointed investors [4] Capital Expenditure and Future Outlook - The company has significantly increased capital expenditures to over $1 billion in 2024, compared to $400 million the previous year [5] - 2026 is seen as a crucial year for demonstrating that these investments will lead to market share gains, with potential cash flow from operations projected at $900 million against an enterprise value of $12.2 billion [5] Valuation Perspective - Despite increased sales volume, the lower pricing mix and weak profitability suggest that Lamb Weston may deserve its discounted valuation for the time being [6] - The company is currently viewed as less attractive during its turnaround phase, although it may appeal to value investors in the future [7]

Core Insights - Lamb Weston reported $1.62 billion in revenue for the quarter ended November 2025, marking a year-over-year increase of 1.1% and exceeding the Zacks Consensus Estimate of $1.59 billion by 1.6% [1] - The company achieved an EPS of $0.69, up from $0.66 a year ago, with a surprise of 2.99% compared to the consensus estimate of $0.67 [1] Financial Performance Metrics - The stock of Lamb Weston has returned +6.7% over the past month, outperforming the Zacks S&P 500 composite's +2.5% change [3] - The company holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3] Pricing and Volume Analysis - Consolidated pricing/mix decreased by 8%, worse than the two-analyst average estimate of -5.7% [4] - North American pricing/mix also fell by 8%, compared to the -6.1% average estimate [4] - International volume increased by 7%, slightly below the 8% estimated by analysts [4] - North American volume rose by 8%, exceeding the 4% estimate [4] - Consolidated volume increased by 8%, surpassing the two-analyst average estimate of 5.3% [4] - International pricing/mix declined by 8%, compared to the -5.1% estimate [4] - Geographic sales in the international market reached $548.6 million, slightly above the three-analyst average estimate of $546.84 million, reflecting a year-over-year change of +3.7% [4] - North American geographic sales totaled $1.07 billion, exceeding the $1.05 billion estimate, but showed a -0.2% change compared to the year-ago quarter [4]

Carnival Cruise - Carnival Cruise reported a mixed quarter with adjusted EPS of 34 cents, exceeding expectations of 25 cents per share [1][2] - Revenue for the quarter was $6.33 billion, slightly below the expected $6.36 billion, but annual revenue reached an all-time high of over $26.5 billion, marking the best year in the company's history [2] - Demand remains strong as consumers are willing to pay higher prices for cruises, with 2026 bookings already matching 2025's record levels [3][4] - The company is improving profitability per passenger while keeping expenses in check, with enhanced fuel efficiency contributing to lower costs [5] - Carnival's balance sheet has improved, with reduced debt leading to a stronger financial position and lower borrowing costs, now considered investment grade by credit rating agencies [6][7] KB Home - KB Home faced challenges in the housing sector, with shares down 6% despite beating expectations with adjusted EPS of $1.92 against a forecast of $1.79 [9] - Revenue was reported at $1.7 billion, exceeding the expected $1.66 billion, but profits and volumes are significantly lower than the previous year due to higher mortgage rates and affordability pressures [10] - The company anticipates 2026 housing revenue to be between $5.6 billion and $6.1 billion, aligning with Wall Street estimates, but acknowledges ongoing challenges in consumer confidence and market conditions [11][12] Lamb Weston - Lamb Weston reported adjusted EPS of 69 cents, better than expected, but revenue of $1.62 billion showed only a 1% year-over-year increase [14] - The company is experiencing margin pressure and pricing challenges, with lower prices offsetting volume gains and rising input costs squeezing profitability [15] - Management is attempting to cut prices to maintain market share in North America, but this strategy is impacting near-term profitability [15][16]

Financial Performance & Outlook - Lamb Weston's Q2 2026 net sales increased by 1% compared to Q2 2025, which includes a favorable foreign currency impact of $24 million[28, 30] - North America net sales were flat, with volume up by 8% but price/mix down by 8%[30, 31] - International net sales increased by 4%, but decreased by 1% on a constant currency basis, with volume up by 7% and price/mix down by 8%[31] - Adjusted EBITDA decreased by $9 million, while adjusted gross profit decreased by $16 million[32] - The company reaffirms its fiscal year 2026 outlook, projecting net sales between $635 billion and $655 billion, and adjusted EBITDA between $1 billion and $12 billion[47] Cash Flow & Capital Allocation - The company has approximately $83 million in cash and cash equivalents, and $135 billion available under its revolving credit facility[39] - Net cash provided by operating activities for the first half of fiscal year 2026 was approximately $530 million, with capital expenditures of $156 million[39] - Free cash flow was $375 million, and the company returned $92 million to shareholders through dividends ($52 million) and share repurchases ($40 million)[39] - The board authorized a 3% increase in the quarterly dividend[9, 46] Strategic Initiatives - The company is executing its "Focus to Win" strategy, which includes a cost savings program expected to yield $100 million in savings in fiscal year 2026 and $250 million by the end of fiscal year 2028[9, 19] - Lamb Weston is optimizing its global supply chain, including restarting curtailed production in North America to meet higher demand[9, 15]

Core Insights - Lamb Weston reported a profit in its latest quarter, indicating a positive shift in financial performance as revenue increased [1] Financial Performance - The company experienced a rise in revenue, contributing to its profitability in the recent quarter [1]

Financial Performance - Q2 FY26 - Conagra's Q2 FY26 organic net sales decreased by 30% compared to the previous year, totaling $2975 million[51, 52, 53] - Adjusted EPS for Q2 FY26 was $045, a decrease of 357% year-over-year[51] - Adjusted operating margin for Q2 FY26 was 113%, a decrease of 406 bps compared to the previous year[51, 54, 55, 57] - For H1 FY26, organic net sales decreased by 19% to $5586 million[51, 76] - Adjusted EPS for H1 FY26 was $085, a decrease of 309% year-over-year[51] Segment Performance - Q2 FY26 - Grocery & Snacks net sales were $1209 million, with a 15% organic net sales decrease[53] - Refrigerated & Frozen net sales were $1251 million, with a 51% organic net sales decrease[53] - International net sales were $230 million, with a 29% organic net sales decrease[53] - Foodservice net sales were $288 million, with a 02% organic net sales increase[53] Key Business Trends - Frozen retail volume sales showed a return to growth on a two-year basis, with a +08% change in Q2 FY26[14, 15] - 90% of frozen products held or gained volume share vs 2 years ago[15] - Conagra's frozen single-serve meals volume share of category was 529% in Q2 FY26, a +05 percentage point change vs 2 years ago[18, 19, 20, 21] - Conagra's frozen vegetables volume % change was +91% vs 2 years ago[22, 23] - Conagra's frozen vegetables volume share of category was 191% in Q2 FY26, a +13 percentage point change vs 2 years ago[24, 25]

Core Viewpoint - Lamb Weston Holdings, Inc. reported a significant turnaround in its financial performance for the second quarter of fiscal 2026, achieving a net income compared to a net loss in the previous year [1]. Financial Performance - The company reported a net income of $62.1 million, or $0.44 per share, compared to a net loss of $36.1 million, or $0.25 per share, from the same quarter last year [1]. - On an adjusted basis, net income was $96.7 million, or $0.69 per share, down from $104.9 million, or $0.73 per share, in the prior year [1][2]. - Net sales increased to $1.618 billion from $1.600 billion in the previous year [3]. Future Outlook - The company expects net sales for fiscal year 2026 to be between $6.35 billion and $6.55 billion [3]. - Analysts anticipate average net sales of $6.52 billion for the full year [3].

EAGLE, Idaho--(BUSINESS WIRE)--Lamb Weston Holdings, Inc. (NYSE: LW) announced today its results for the second quarter of fiscal 2026 and updated its full year financial targets for fiscal 2026. Summary of Second Quarter FY 2026 Results ($ in millions, except per share) Â Â Q2 2026 Â Year-Over-Year Growth Rates YTD 2026 Year-Over-Year Growth Rates Net sales $ 1.618.1 1 % $ 3.277.3 1 % Income from operations $ 139.2 Â 652 % Â $ 295.7 Â 28 % Net income $ 62.1 Â 272 % Â $ 126.4 Â 38 % D. ...