Nike slumped 9.6%, as the impact from tariffs overshadowed an otherwise strong quarterly profit report. Frozen potato maker Lamb Weston fell 19.8%, despite also beating Wall Street's profit and revenue forecasts. Stocks rose in morning trading on Wall Street Friday and further trimmed losses from earlier in the week for several major indexes. The S&P 500 jumped 0.8%, adding to gains made on Thursday. The Dow Jones Industrial Average rose 283 points, or 0.6%, as of 10:05 a.m. Eastern. The Nasdaq jumped 1% an ...

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].