Lamb Weston Holdings Prepares to Announce Q3 Earnings Amid Challenges
Eagle, Idaho-based Lamb Weston Holdings, Inc. (LW) specializes in producing, distributing, and marketing frozen potato products. With a market capitalization of $7.6 billion, the company offers a variety of products including fries, oven-roasted potatoes, puffs, chips, slices, and prepared potato goods. The french fry giant is set to release its fiscal third-quarter earnings for 2025 before the market opens on Thursday, April 3.
Analysts Anticipate Declining Profits
Leading up to the earnings announcement, analysts forecast that LW will report a diluted profit of $0.87 per share. This figure represents a 27.5% decrease from last year’s earnings of $1.20 per share in the same quarter. Notably, the company has missed consensus estimates in three of the last four quarters, successfully beating or matching forecasts only once.
Yearly Expectations and Future Growth
For the entire fiscal year, analysts predict LW will report earnings per share (EPS) of $3.09. This marks a significant 39.2% reduction from $5.08 reported in fiscal 2024. However, there are expectations for a turnaround, with EPS anticipated to rise 15.9% year-over-year to reach $3.58 in fiscal 2026.
Stock Performance vs. Market
Over the past 52 weeks, LW stock has considerably lagged behind the S&P 500’s ($SPX) 7.4% gains, experiencing a decline of 49.2%. Additionally, it has underperformed compared to the Consumer Staples Select Sector SPDR Fund’s (XLP) 8% increase during the same period.
Recent Financial Challenges
On December 19, 2024, LW shares dropped over 20% following the release of its Q2 results. The reported adjusted EPS fell 54.5% from the previous year, landing at $0.66, while total revenue decreased to $1.6 billion—a 7.6% annual decline.
Analyst Ratings and Target Price
Despite past challenges, analysts maintain a mostly optimistic outlook for LW. The consensus opinion is a “Moderate Buy” rating, as determined by 11 analysts monitoring the stock. Among them, four recommend a “Strong Buy,” while seven suggest a “Hold.” The average analyst price target for LW is set at $65.73, indicating a potential upside of 23.3% from the current trading levels.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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