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Lamb Weston Q1 Earnings Coming Up: Here's What You Should Know
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Lamb Weston Holdings, Inc. (LW - Free Report) is likely to register a top-and-bottom-line decline when it reports first-quarter fiscal 2025 earnings on Oct. 1, 2024. The Zacks Consensus Estimate for revenues is pegged at $1.56 billion, suggesting a decrease of 6.6% from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for the bottom line has remained unchanged in the past 30 days at 73 cents per share. The projection indicates a decline of 55.2% from the figure reported in the year-ago period. LW has a trailing four-quarter earnings surprise of 0.4%, on average.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
Things to Consider About Lamb Weston’s Upcoming Results
Lamb Weston has been facing a dynamic operating landscape, marked by softened global restaurant traffic and reduced demand for frozen potatoes due to ongoing menu price inflation. LW expects this supply-demand imbalance to persist throughout fiscal 2025.
In first-quarter fiscal 2025, management anticipates a decline in sales in the mid to high single digits, with volume expected to decrease by mid-single digits. This outlook reflects the lingering effects of share losses, weak restaurant traffic and the recent voluntary product withdrawal. Our model suggests a 3.5% decline in volumes in the quarter under review.
Input cost inflation poses further financial pressure on the company. Higher cost per pound, an unfavorable product mix and increased investments in pricing and trade support are likely to have put pressure on margins in the fiscal first quarter. We expect the adjusted operating margin to contract 340 basis points to 11% in the fiscal first quarter.
However, Lamb Weston has been benefiting from a pricing effort. Efforts to boost offerings and expand capacity have also been working well.
Our proven model does not conclusively 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, which is not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
LW has an Earnings ESP of 0.00% and carries a Zacks Rank #5 (Strong Sell).
Stocks With Favorable Combination
Here are some companies worth considering, as our model shows that these, too, have the correct combination to beat on earnings this time around.
Coty (COTY - Free Report) has an Earnings ESP of +3.85% and a Zacks Rank of 3 at present. The company is expected to register top-and-bottom-line growth when it reports first-quarter fiscal 2025 numbers. The Zacks Consensus Estimate for COTY’s quarterly earnings has remained unchanged in the past 30 days at 20 cents per share. The consensus mark for earnings indicates a 122.2% surge from the figure reported in the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for quarterly revenues is pegged at $1.7 billion, indicating a rise of 3.1% from the figure reported in the year-ago quarter. COTY delivered a trailing four-quarter average negative earnings surprise of 53.4%.
The Kraft Heinz Company (KHC - Free Report) currently has an Earnings ESP of +0.21% and a Zacks Rank #3. KHC is expected to register a top-line decline when it reports third-quarter 2024 results.
The Zacks Consensus Estimate for revenues is pegged at $6.4 billion, indicating a 2.1% decline from the prior-year quarter’s actual. The consensus mark for earnings is pegged at 74 cents per share, suggesting 2.8% growth from the year-ago quarter’s tally. KHC has a trailing four-quarter earnings surprise of 4.7%, on average.
Clorox (CLX - Free Report) currently has an Earnings ESP of +0.04% and a Zacks Rank of 3. The company is likely to register top-and-bottom-line growth when it reports first-quarter fiscal 2025 numbers. The Zacks Consensus Estimate for Clorox’s quarterly revenues is pegged at $1.63 billion, which indicates an increase of 17.7% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Clorox’s quarterly earnings of $1.35 per share indicates growth of 175.5% from the year-ago quarter’s levels. CLX has a trailing four-quarter earnings surprise of 122.9%, on average.
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Lamb Weston Q1 Earnings Coming Up: Here's What You Should Know
Lamb Weston Holdings, Inc. (LW - Free Report) is likely to register a top-and-bottom-line decline when it reports first-quarter fiscal 2025 earnings on Oct. 1, 2024. The Zacks Consensus Estimate for revenues is pegged at $1.56 billion, suggesting a decrease of 6.6% from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for the bottom line has remained unchanged in the past 30 days at 73 cents per share. The projection indicates a decline of 55.2% from the figure reported in the year-ago period. LW has a trailing four-quarter earnings surprise of 0.4%, on average.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
Things to Consider About Lamb Weston’s Upcoming Results
Lamb Weston has been facing a dynamic operating landscape, marked by softened global restaurant traffic and reduced demand for frozen potatoes due to ongoing menu price inflation. LW expects this supply-demand imbalance to persist throughout fiscal 2025.
In first-quarter fiscal 2025, management anticipates a decline in sales in the mid to high single digits, with volume expected to decrease by mid-single digits. This outlook reflects the lingering effects of share losses, weak restaurant traffic and the recent voluntary product withdrawal. Our model suggests a 3.5% decline in volumes in the quarter under review.
Input cost inflation poses further financial pressure on the company. Higher cost per pound, an unfavorable product mix and increased investments in pricing and trade support are likely to have put pressure on margins in the fiscal first quarter. We expect the adjusted operating margin to contract 340 basis points to 11% in the fiscal first quarter.
However, Lamb Weston has been benefiting from a pricing effort. Efforts to boost offerings and expand capacity have also been working well.
Lamb Weston Price, Consensus and EPS Surprise
Lamb Weston price-consensus-eps-surprise-chart | Lamb Weston Quote
Earnings Whispers for Lamb Weston
Our proven model does not conclusively 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, which is not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
LW has an Earnings ESP of 0.00% and carries a Zacks Rank #5 (Strong Sell).
Stocks With Favorable Combination
Here are some companies worth considering, as our model shows that these, too, have the correct combination to beat on earnings this time around.
Coty (COTY - Free Report) has an Earnings ESP of +3.85% and a Zacks Rank of 3 at present. The company is expected to register top-and-bottom-line growth when it reports first-quarter fiscal 2025 numbers. The Zacks Consensus Estimate for COTY’s quarterly earnings has remained unchanged in the past 30 days at 20 cents per share. The consensus mark for earnings indicates a 122.2% surge from the figure reported in the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for quarterly revenues is pegged at $1.7 billion, indicating a rise of 3.1% from the figure reported in the year-ago quarter. COTY delivered a trailing four-quarter average negative earnings surprise of 53.4%.
The Kraft Heinz Company (KHC - Free Report) currently has an Earnings ESP of +0.21% and a Zacks Rank #3. KHC is expected to register a top-line decline when it reports third-quarter 2024 results.
The Zacks Consensus Estimate for revenues is pegged at $6.4 billion, indicating a 2.1% decline from the prior-year quarter’s actual. The consensus mark for earnings is pegged at 74 cents per share, suggesting 2.8% growth from the year-ago quarter’s tally. KHC has a trailing four-quarter earnings surprise of 4.7%, on average.
Clorox (CLX - Free Report) currently has an Earnings ESP of +0.04% and a Zacks Rank of 3. The company is likely to register top-and-bottom-line growth when it reports first-quarter fiscal 2025 numbers. The Zacks Consensus Estimate for Clorox’s quarterly revenues is pegged at $1.63 billion, which indicates an increase of 17.7% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Clorox’s quarterly earnings of $1.35 per share indicates growth of 175.5% from the year-ago quarter’s levels. CLX has a trailing four-quarter earnings surprise of 122.9%, on average.