Lamb Weston (NYSE:LW) Issues FY 2027 Earnings Guidance

Lamb Weston (NYSE:LW) issued an update on its FY 2027 earnings guidance on Friday. The company provided earnings per share guidance of 2.950-3.250 for the period, compared to the consensus EPS estimate of 3.020. The company issued revenue guidance of $6.6 billion-$6.7 billion, compared to the consensus revenue estimate of $6.4 billion.

Lamb Weston Stock Up 0.8%

Shares of LW opened at $49.57 on Friday. The company has a market capitalization of $6.84 billion, a PE ratio of 23.83, a PEG ratio of 6.58 and a beta of 0.47. Lamb Weston has a 12 month low of $37.62 and a 12 month high of $67.07. The stock’s 50-day moving average price is $44.73 and its two-hundred day moving average price is $44.25. The company has a current ratio of 1.46, a quick ratio of 0.69 and a debt-to-equity ratio of 1.99.

Lamb Weston (NYSE:LW) last issued its quarterly earnings results on Friday, July 24th. The specialty retailer reported $0.87 earnings per share for the quarter, beating the consensus estimate of $0.63 by $0.24. Lamb Weston had a return on equity of 23.77% and a net margin of 4.61%.The company had revenue of $1.77 billion during the quarter, compared to analysts’ expectations of $1.70 billion. During the same quarter in the prior year, the firm posted $0.87 earnings per share. The business’s quarterly revenue was up 5.6% on a year-over-year basis. Lamb Weston has set its FY 2027 guidance at 2.950-3.250 EPS. On average, analysts anticipate that Lamb Weston will post 3.08 EPS for the current year.

Lamb Weston Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, September 4th. Investors of record on Friday, August 7th will be issued a $0.38 dividend. The ex-dividend date is Friday, August 7th. This represents a $1.52 annualized dividend and a yield of 3.1%. Lamb Weston’s dividend payout ratio is presently 71.03%.

Analysts Set New Price Targets

LW has been the subject of a number of recent analyst reports. Stifel Nicolaus decreased their target price on shares of Lamb Weston from $50.00 to $45.00 and set a “hold” rating for the company in a research report on Thursday, April 2nd. BNP Paribas Exane reduced their price objective on shares of Lamb Weston from $48.00 to $41.00 and set a “neutral” rating on the stock in a research note on Thursday, April 2nd. Bank of America decreased their price objective on shares of Lamb Weston from $49.00 to $47.00 and set a “neutral” rating for the company in a research report on Thursday, April 2nd. JPMorgan Chase & Co. increased their price objective on shares of Lamb Weston from $43.00 to $48.00 and gave the stock a “neutral” rating in a research report on Thursday, July 9th. Finally, Wells Fargo & Company lifted their target price on shares of Lamb Weston from $46.00 to $54.00 and gave the stock an “overweight” rating in a research note on Wednesday, July 8th. Three analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, Lamb Weston has a consensus rating of “Hold” and an average target price of $49.27.

Key Stories Impacting Lamb Weston

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

• Positive Sentiment: Lamb Weston beat fiscal Q4 earnings and revenue estimates, with stronger North American volume driving the top line. Lamb Weston (LW) Q4 Earnings and Revenues Beat Estimates
• Positive Sentiment: The company issued FY 2027 guidance that implies modest growth and revenue above consensus, suggesting management confidence in the turnaround. Lamb Weston earnings report
• Neutral Sentiment: Management said higher production and cost savings are helping offset inflation and geopolitical disruptions, but those headwinds are still affecting international sales. Seeking Alpha news
• Neutral Sentiment: Analysts remain cautious despite the beat, with at least one downgrade saying the stock may be past the worst but still faces meaningful challenges. Lamb Weston: Passing The Bottom, But Challenges Remain (Downgrade)
• Negative Sentiment: International weakness, inflation, and geopolitical volatility continue to pressure margins and could limit how quickly earnings improve. Lamb Weston Posts Higher Sales on North America Growth

Institutional Investors Weigh In On Lamb Weston

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Price T Rowe Associates Inc. MD boosted its position in shares of Lamb Weston by 27.4% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 9,824,690 shares of the specialty retailer’s stock worth $411,558,000 after purchasing an additional 2,111,874 shares in the last quarter. State Street Corp boosted its holdings in Lamb Weston by 1.1% in the second quarter. State Street Corp now owns 5,801,585 shares of the specialty retailer’s stock worth $300,812,000 after acquiring an additional 63,865 shares in the last quarter. Invesco Ltd. grew its position in Lamb Weston by 2.5% in the 3rd quarter. Invesco Ltd. now owns 3,286,305 shares of the specialty retailer’s stock valued at $190,869,000 after purchasing an additional 79,257 shares during the period. BROOKFIELD Corp ON increased its position in shares of Lamb Weston by 29.0% during the fourth quarter. BROOKFIELD Corp ON now owns 2,226,311 shares of the specialty retailer’s stock worth $93,260,000 after acquiring an additional 500,000 shares in the last quarter. Finally, Dimensional Fund Advisors LP raised its stake in shares of Lamb Weston by 8.7% in the fourth quarter. Dimensional Fund Advisors LP now owns 2,141,037 shares of the specialty retailer’s stock worth $89,688,000 after purchasing an additional 172,165 shares during the last quarter. 89.56% of the stock is owned by institutional investors.

Lamb Weston Company Profile

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.