Potato products company Lamb Weston (NYSE: LW) will be announcing earnings results this Friday before market open. Here’s what to look for.
Lamb Weston beat analysts’ revenue expectations by 2.6% last quarter, reporting revenues of $1.66 billion, flat year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ adjusted operating income estimates.
Is Lamb Weston a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Lamb Weston’s revenue to be flat year on year at $1.59 billion, improving from the 7.6% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.65 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Lamb Weston has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Lamb Weston’s peers in the consumer staples segment, only General Mills has reported results so far. It beat analysts’ revenue estimates by 1.9%, posting year-on-year sales declines of 7.2%.
Read our full analysis of General Mills’s earnings results here.There has been positive sentiment among investors in the consumer staples segment, with share prices up 5.8% on average over the last month. Lamb Weston is up 5.8% during the same time and is heading into earnings with an average analyst price target of $66.27 (compared to the current share price of $59.48).
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