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Will Lamb Weston (LW) Top Estimates in Q4 Earnings Release?
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Lamb Weston Holdings, Inc. (LW - Free Report) is likely to register top and bottom-line growth when it reports fourth-quarter fiscal 2024 earnings on Jul 24. The Zacks Consensus Estimate for revenues is pegged at $1.7 billion, which suggests growth of 0.8% from the prior-year quarter’s reported figure. The consensus mark for the fiscal 2024 top line is pegged at $6.6 billion, indicating a growth of 22.7% from the prior-year reported figure.
The consensus mark for quarterly earnings has remained unchanged in the past 30 days at $1.24 per share. This indicates growth of 1.6% from the year-ago quarter’s reported figure. The consensus mark for the fiscal 2024 bottom line is pegged at $5.53 per share, suggesting an increase of 18.2% from the prior-year reported figure. LW has a trailing four-quarter earnings surprise of 13.8%, on average.
Factors To Note
Lamb Weston has been reaping the benefits of an effective pricing scenario and robust operational momentum. The company’s pricing efforts are likely to have been aiding its top-line growth. For the fourth quarter of fiscal 2024, management envisions net sales in the band of $1.69-$1.75 billion, backed by the greater price/mix. For fiscal 2024, the company expects net sales in the range of $6.54-$6.60 billion, reflecting year-over-year growth. We expect a price/mix increase of 5.4% and 10.3%, respectively, in the fourth quarter and fiscal 2024.
Lamb Weston has prioritized enhancing supply chain efficiency, expanding globally, improving manufacturing and system capabilities, and enhancing product quality, all of which have been key growth drivers. Notably, efforts to boost offerings and expand capacity have enabled the company to meet rising demand conditions for snacks and fries effectively. Upsides like these bode well for the quarter under review.
For fiscal 2024, the company expects adjusted EBITDA of $1,480-$1,510 million compared with $1,124.3 million reported in fiscal 2023. Management expects quarterly adjusted EBITDA in the range of $350-$375 million, up from $309.9 million reported in the year-ago quarter. The company anticipates adjusted earnings per share of $5.50-$5.65 in fiscal 2024, reflecting year-over-year growth.
Yet, management expects a volume decline of mid-single digits in the to-be-reported quarter, thanks to soft restaurant traffic trends across North America. In addition, restaurant traffic trends in various key international markets are also softer than anticipated. In addition, volumes are likely to have been impacted by the enterprise resource planning system transition impacting some customers in North America. Our model suggests a volume decline of 4.2% in the quarter under view. Also, rising SG&A expenses are likely to have been a deterrent.
What the Zacks Model Unveils
Our proven model does not predict an earnings beat for Lamb Weston this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, this is not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Lamb Weston currently carries a Zacks Rank #4 (Sell) and has an Earnings ESP of -1.61%.
Some Stocks With the Favorable Combination
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
The company is expected to register top and bottom-line growth when it reports second-quarter 2024 numbers. The Zacks Consensus Estimate for CL’s quarterly revenues is pegged at $5 billion, which indicates growth of 4.1% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for Colgate-Palmolive’s quarterly earnings has been unchanged in the past 30 days at 87 cents per share. The estimate suggests almost 13% growth from the year-ago reported quarter. CL has delivered an earnings surprise of 4.4%, on average, in each of the trailing four quarters.
Philip Morris International (PM - Free Report) currently has an Earnings ESP of +1.42% and a Zacks Rank of 2. The company is likely to register top-line growth when it reports second-quarter 2024 results. The Zacks Consensus Estimate for Philip Morris’ quarterly revenues is pegged at $9.1 million, which suggests growth of 1.8% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for PM’s quarterly earnings is pegged at $1.55 per share. The consensus mark indicates a 3.1% decline from the year-ago quarter’s reported number. PM has a trailing four-quarter earnings surprise of 3.2%, on average.
Clorox (CLX - Free Report) currently has an Earnings ESP of +1.51% and a Zacks Rank of 3. The company is likely to register a top- and bottom-line decline when it reports fourth-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for Clorox’s quarterly revenues is pegged at $1.98 billion, calling for a decline of almost 2% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Clorox’s quarterly earnings of $1.54 implies a drop of 7.8% from the year-ago quarter’s levels. However, Clorox has a trailing four-quarter earnings surprise of 128.5%, on average.
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Will Lamb Weston (LW) Top Estimates in Q4 Earnings Release?
Lamb Weston Holdings, Inc. (LW - Free Report) is likely to register top and bottom-line growth when it reports fourth-quarter fiscal 2024 earnings on Jul 24. The Zacks Consensus Estimate for revenues is pegged at $1.7 billion, which suggests growth of 0.8% from the prior-year quarter’s reported figure. The consensus mark for the fiscal 2024 top line is pegged at $6.6 billion, indicating a growth of 22.7% from the prior-year reported figure.
The consensus mark for quarterly earnings has remained unchanged in the past 30 days at $1.24 per share. This indicates growth of 1.6% from the year-ago quarter’s reported figure. The consensus mark for the fiscal 2024 bottom line is pegged at $5.53 per share, suggesting an increase of 18.2% from the prior-year reported figure. LW has a trailing four-quarter earnings surprise of 13.8%, on average.
Factors To Note
Lamb Weston has been reaping the benefits of an effective pricing scenario and robust operational momentum. The company’s pricing efforts are likely to have been aiding its top-line growth.
For the fourth quarter of fiscal 2024, management envisions net sales in the band of $1.69-$1.75 billion, backed by the greater price/mix. For fiscal 2024, the company expects net sales in the range of $6.54-$6.60 billion, reflecting year-over-year growth. We expect a price/mix increase of 5.4% and 10.3%, respectively, in the fourth quarter and fiscal 2024.
Lamb Weston has prioritized enhancing supply chain efficiency, expanding globally, improving manufacturing and system capabilities, and enhancing product quality, all of which have been key growth drivers. Notably, efforts to boost offerings and expand capacity have enabled the company to meet rising demand conditions for snacks and fries effectively. Upsides like these bode well for the quarter under review.
For fiscal 2024, the company expects adjusted EBITDA of $1,480-$1,510 million compared with $1,124.3 million reported in fiscal 2023. Management expects quarterly adjusted EBITDA in the range of $350-$375 million, up from $309.9 million reported in the year-ago quarter. The company anticipates adjusted earnings per share of $5.50-$5.65 in fiscal 2024, reflecting year-over-year growth.
Lamb Weston Price and EPS Surprise
Lamb Weston price-eps-surprise | Lamb Weston Quote
Yet, management expects a volume decline of mid-single digits in the to-be-reported quarter, thanks to soft restaurant traffic trends across North America. In addition, restaurant traffic trends in various key international markets are also softer than anticipated. In addition, volumes are likely to have been impacted by the enterprise resource planning system transition impacting some customers in North America. Our model suggests a volume decline of 4.2% in the quarter under view. Also, rising SG&A expenses are likely to have been a deterrent.
What the Zacks Model Unveils
Our proven model does not predict an earnings beat for Lamb Weston this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, this is not the case here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Lamb Weston currently carries a Zacks Rank #4 (Sell) and has an Earnings ESP of -1.61%.
Some Stocks With the Favorable Combination
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
Colgate-Palmolive (CL - Free Report) currently has an Earnings ESP of +0.45% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company is expected to register top and bottom-line growth when it reports second-quarter 2024 numbers. The Zacks Consensus Estimate for CL’s quarterly revenues is pegged at $5 billion, which indicates growth of 4.1% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for Colgate-Palmolive’s quarterly earnings has been unchanged in the past 30 days at 87 cents per share. The estimate suggests almost 13% growth from the year-ago reported quarter. CL has delivered an earnings surprise of 4.4%, on average, in each of the trailing four quarters.
Philip Morris International (PM - Free Report) currently has an Earnings ESP of +1.42% and a Zacks Rank of 2. The company is likely to register top-line growth when it reports second-quarter 2024 results. The Zacks Consensus Estimate for Philip Morris’ quarterly revenues is pegged at $9.1 million, which suggests growth of 1.8% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for PM’s quarterly earnings is pegged at $1.55 per share. The consensus mark indicates a 3.1% decline from the year-ago quarter’s reported number. PM has a trailing four-quarter earnings surprise of 3.2%, on average.
Clorox (CLX - Free Report) currently has an Earnings ESP of +1.51% and a Zacks Rank of 3. The company is likely to register a top- and bottom-line decline when it reports fourth-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for Clorox’s quarterly revenues is pegged at $1.98 billion, calling for a decline of almost 2% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Clorox’s quarterly earnings of $1.54 implies a drop of 7.8% from the year-ago quarter’s levels. However, Clorox has a trailing four-quarter earnings surprise of 128.5%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.