Earnings Alerts

Lamb Weston Holdings (LW) Earnings: Q4 Adjusted EPS Falls Short of Estimates

  • Adjusted EPS misses estimates: Reported at $0.78 compared to the estimated $1.25.
  • Adjusted EBITDA: Reported at $283.4 million, below the estimate of $357.4 million.
  • North America Adjusted EBITDA: Reported at $276.5 million.
  • Net Sales: Reported at $1.61 billion, falling short of the $1.7 billion estimate.
  • North America Net Sales: Reported at $1.11 billion, versus the estimate of $1.17 billion.
  • International Net Sales: Reported at $498.7 million, below the $530.7 million estimate.
  • Volume Declines: North America volume down by 7%, International volume down by 9%.
  • Price/Mix: Overall price/mix increased by 3%, short of the 5.41% estimate.
  • North America Price/Mix: Increased by 3%.
  • International Price/Mix: Increased by 2%.
  • 2025 Year Forecast: Net sales projected to be between $6.6 billion to $6.8 billion, against the estimate of $6.79 billion.
  • Market Environment Changes: Global restaurant traffic and frozen potato demand have softened due to menu price inflation.
  • Increased Capacity: Noted in North America and Europe.
  • Long-term Strategies: Focus remains on execution and improving customer service despite challenges.
  • Near-term Adjustments: Plans to reinvigorate volume growth, make targeted investments, implement cost and productivity measures, and rephase modernization investments.
  • Market Consensus: 14 buys, 0 holds, 0 sells.

Lamb Weston Holdings on Smartkarma

Analysts on Smartkarma are closely monitoring Lamb Weston Holdings, including a recent report from Value Investors Club titled “Lamb Weston Holdings Inc (LW) – Friday, Oct 27, 2023″. The report highlights a significant 30% drop in Lamb Weston’s stock price since July 2023, driven by market concerns related to consumer consumption and caloric intake behavior influenced by GLP-1s. Despite this downturn, experts view this as an overreaction and see it as a favorable opportunity for investors. Lamb Weston is recognized for its high-quality business, robust pricing power, and long-term earnings growth potential, countering misconceptions influencing the stock price decline.

The Value Investors Club analysis emphasizes that the reported volume decline and worries about demand and pricing power do not accurately reflect Lamb Weston’s actual prospects. The report underscores misunderstandings contributing to the stock’s negative trajectory and advises investors to consider the company’s strong fundamentals amidst market turbulence. By providing insightful research on companies like Lamb Weston Holdings, Smartkarma acts as a platform for independent analysts to offer valuable perspectives on investment opportunities, aiding investors in making informed decisions.


A look at Lamb Weston Holdings Smart Scores

FactorScoreMagnitude
Value2
Dividend3
Growth5
Resilience2
Momentum2
OVERALL SMART SCORE2.8

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Analysts at Smartkarma have evaluated the long-term outlook for Lamb Weston Holdings, a company that specializes in producing and supplying frozen potato products. Based on the Smart Scores provided, Lamb Weston Holdings received a high score of 5 for Growth, indicating a positive outlook for its expansion and development in the future. This suggests that the company is on a strong trajectory for long-term growth opportunities.

However, the company scored lower on other factors, with scores of 2 for both Value and Resilience, and 3 for Dividend and Momentum. This signifies that while Lamb Weston Holdings may face challenges in terms of value and resilience, its growth prospects remain robust. Investors keen on companies with strong growth potential may find Lamb Weston Holdings an attractive long-term investment option.


Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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