Lamb Weston (NYSE:LW) Posts Earnings Results, Beats Expectations By $0.01 EPS

Lamb Weston (NYSE:LW) issued its earnings results on Friday. The specialty retailer reported $0.69 earnings per share for the quarter, topping the consensus estimate of $0.68 by $0.01, Zacks reports. Lamb Weston had a return on equity of 28.08% and a net margin of 4.56%.The business had revenue of $1.62 billion for the quarter, compared to analyst estimates of $1.59 billion. During the same period last year, the company posted $0.66 EPS. The business’s quarterly revenue was up 1.1% on a year-over-year basis.

Here are the key takeaways from Lamb Weston’s conference call:

• Lamb Weston reported strong demand with volume up 8% in Q2 (7% for H1), reopened previously curtailed North American lines to meet customer fill rates, and expects H2 North America volumes to be at or above H1 levels.
• Price/mix pressures weighed on profitability—constant-currency price mix declined ~8%, adjusted EBITDA fell $9 million to $286 million, and international profitability was hit by pricing actions, a strong European crop, and ramp-up/underutilization costs (notably in Argentina and parts of Europe).
• Cost-savings initiatives are on track and supporting margins, while liquidity and cash generation are strong with $375 million Free Cash Flow in H1, reduced capex, $40 million of buybacks in Q2 and a 3% dividend increase.
• Management reaffirmed fiscal 2026 guidance (Adjusted EBITDA range $1.0–$1.2 billion, expecting to finish near the midpoint) but warned second-half gross margin headwinds from mix and international costs, keeping outlook cautious amid macro and competitive uncertainty.

Lamb Weston Price Performance

Shares of LW stock opened at $44.01 on Friday. The firm has a fifty day simple moving average of $60.51 and a 200-day simple moving average of $57.15. The company has a market capitalization of $6.13 billion, a PE ratio of 21.06, a price-to-earnings-growth ratio of 5.44 and a beta of 0.44. Lamb Weston has a twelve month low of $43.71 and a twelve month high of $68.61. The company has a current ratio of 1.49, a quick ratio of 0.77 and a debt-to-equity ratio of 2.05.

Lamb Weston Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, February 27th. Stockholders of record on Friday, January 30th will be paid a $0.38 dividend. This represents a $1.52 annualized dividend and a dividend yield of 3.5%. This is a boost from Lamb Weston’s previous quarterly dividend of $0.37. The ex-dividend date is Friday, January 30th. Lamb Weston’s payout ratio is currently 70.81%.

Hedge Funds Weigh In On Lamb Weston

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Danske Bank A S acquired a new stake in shares of Lamb Weston during the third quarter valued at about $52,000. Larson Financial Group LLC lifted its stake in shares of Lamb Weston by 47.1% in the third quarter. Larson Financial Group LLC now owns 953 shares of the specialty retailer’s stock worth $55,000 after acquiring an additional 305 shares in the last quarter. Employees Retirement System of Texas purchased a new position in Lamb Weston in the third quarter valued at about $73,000. iSAM Funds UK Ltd acquired a new stake in Lamb Weston during the 3rd quarter valued at approximately $76,000. Finally, State of Wyoming purchased a new stake in Lamb Weston during the 2nd quarter worth approximately $73,000. 89.56% of the stock is owned by hedge funds and other institutional investors.

Lamb Weston News Summary

Here are the key news stories impacting Lamb Weston this week:

• Positive Sentiment: Company beat the top-line and EPS expectations for the quarter (net sales ~$1.62B; EPS ~$0.69) and noted volume gains and market‑share progress — evidence the business still has demand momentum. Lamb Weston (LW) Q2 Earnings and Revenues Top Estimates
• Neutral Sentiment: Management reaffirmed FY2026 revenue guidance (roughly $6.4–$6.6B) and the company provided an updated outlook in its press release — they did not raise guidance despite the beat, leaving forecasts unchanged. Lamb Weston Reports Second Quarter Fiscal 2026 Results; Reaffirms Fiscal Year 2026 Outlook
• Negative Sentiment: Investors reacted to pronounced pricing pressure: margins and EBITDA contracted, and management commentary signaled continued cost and pricing headwinds — investors feared profit durability even with sales growth. Lamb Weston Shares Sink As Pricing Pressure Weighs
• Negative Sentiment: Despite the beat and guidance reaffirmation, the tone and results were viewed as underwhelming (profitability metrics improved from year-ago levels but fell short of where investors expected), triggering a large sell-off and pushing the stock toward multi‑year lows. Why is Lamb Weston stock on track for 6-year lows even after reaffirming guidance?
• Negative Sentiment: Market reaction was amplified by high-volume selling and headlines calling the quarter underwhelming; several outlets noted the stock plunged despite the modest beat, reflecting investor focus on margins and near‑term earnings risk. Lamb Weston (NYSE:LW) Beats Q4 CY2025 Sales Expectations But Stock Drops
• Neutral Sentiment: For deeper context, read the Q2 earnings call transcript and slide deck for management remarks on pricing, cost outlook and capital allocation that guided investor reactions. Lamb Weston Q2 2026 Earnings Call Transcript

Analyst Upgrades and Downgrades

LW has been the subject of a number of research analyst reports. Cfra Research raised shares of Lamb Weston to a “hold” rating in a research report on Thursday, October 2nd. Cowen reiterated a “hold” rating on shares of Lamb Weston in a research note on Wednesday, October 1st. Sanford C. Bernstein set a $65.00 target price on shares of Lamb Weston and gave the company a “market perform” rating in a research note on Wednesday, October 1st. Bank of America lifted their target price on shares of Lamb Weston from $60.00 to $66.00 and gave the company a “neutral” rating in a report on Wednesday, October 1st. Finally, Zacks Research cut shares of Lamb Weston from a “strong-buy” rating to a “hold” rating in a research report on Friday, December 12th. Four investment analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus price target of $64.89.

About Lamb Weston

Lamb Weston, traded on the NYSE under the symbol LW, is a leading global processor and supplier of frozen potato products. The company’s portfolio includes a variety of potato-based items such as French fries, potato wedges, hash browns and specialty cuts tailored to the foodservice and retail grocery channels. Lamb Weston serves quick-service restaurants, full-service operators, grocery chains and food distributors, offering customized product formats, packaging solutions and seasoning options to meet evolving customer demands.

Founded in 1950 and headquartered in Eagle, Idaho, Lamb Weston has grown from a regional processor into one of the world’s largest producers of frozen potato products.