Potato products company Lamb Weston (NYSE: LW) will be reporting results this Friday before the bell. Here’s what you need to know.
Lamb Weston beat analysts’ revenue expectations last quarter, reporting revenues of $1.56 billion, up 2.9% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ organic revenue estimates and an impressive beat of analysts’ EBITDA estimates.
Is Lamb Weston a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Lamb Weston’s revenue to be flat year on year, slowing from the 4% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Lamb Weston has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Lamb Weston’s peers in the shelf-stable food segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Simply Good Foods’s revenues decreased 6.3% year on year, beating analysts’ expectations by 5.1%, and General Mills reported revenues up 1.2%, topping estimates by 0.7%. Simply Good Foods’s stock price was unchanged after the resultswhile General Mills was up 8%.
Read our full analysis of Simply Good Foods’s results here and General Mills’s results here.
There has been positive sentiment among investors in the shelf-stable food segment, with share prices up 5.8% on average over the last month. Lamb Weston is up 8.8% during the same time and is heading into earnings with an average analyst price target of $47.92 (compared to the current share price of $48.83).
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