Frozen food company Lamb Weston Holdings (LW) has reported financial results that beat Wall Street forecasts.
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For its Fiscal first quarter, Lamb Weston reported earnings per share of $0.73, which was slightly ahead of the consensus expectations of $0.72 among analysts who track the company’s progress. Revenue in the quarter totaled $1.65 billion, which topped the $1.56 billion that had been expected on Wall Street.
In terms of guidance, Lamb Weston said that it expects full-year earnings in a range of $4.15 to $4.35 per share, and revenue in a range of $6.60 billion to $6.80 billion. The outlook was below Wall Street forecasts, sending LW stock down 5% in extended trading.
A Rebound for Lamb Weston
The latest financial results were a rebound for Lamb Weston, which badly missed Wall Street’s forecasts with its two previous prints. The company, which makes frozen French fries and waffles, recently made several changes to its board of directors in an effort to bolster its leadership and oversight.
The company has also announced the permanent closure of one of its largest potato processing plant, impacting 375 workers. The closure is taking place as Lamb Weston seeks to reduce costs. The job cuts equal about 4% of Lamb Weston’s global workforce of 10,700 people.
Is LW Stock a Buy?
Lamb Weston stock has a consensus Moderate Buy rating among 10 Wall Street analysts. That rating is based on six Buy and four Hold recommendations made in the last three months. There are no Sell ratings on the stock. The average LW price target of $68.75 implies 5.92% upside from current levels.
