Lamb Weston (LW) Q3 Earnings: What To Expect
Potato products company Lamb Weston (NYSE:LW) will be reporting results tomorrow after market hours. Here’s what to look for.
Lamb Weston missed analysts’ revenue expectations by 5.5% last quarter, reporting revenues of $1.61 billion, down 4.9% year on year. It was a disappointing quarter for the company, with underwhelming earnings guidance for the full year and a miss of analysts’ organic revenue growth estimates.
Is Lamb Weston a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Lamb Weston’s revenue to decline 6.7% year on year to $1.55 billion, a reversal from the 47.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.71 per share.
The majority of analysts covering the company have 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 met analysts’ revenue estimates, posting year-on-year sales declines of 1.2%. The stock traded up 0.5% on the results.
Read our full analysis of General Mills’s earnings results here.Investors in the consumer staples segment have had steady hands going into earnings, with share prices up 1.8% on average over the last month. Lamb Weston is up 8.2% during the same time and is heading into earnings with an average analyst price target of $70.95 (compared to the current share price of $66.80).
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