Lamb Weston (NYSE:LW) Releases Quarterly Earnings Results, Beats Expectations By $0.09 EPS

Lamb Weston (NYSE:LW) announced its quarterly earnings results on Wednesday. The specialty retailer reported $0.72 EPS for the quarter, topping the consensus estimate of $0.63 by $0.09, FiscalAI reports. Lamb Weston had a return on equity of 27.71% and a net margin of 6.06%.The business had revenue of $1.56 billion for the quarter, compared to analyst estimates of $1.49 billion. During the same quarter in the previous year, the company earned $1.10 EPS. The company’s quarterly revenue was up 2.9% on a year-over-year basis.

Here are the key takeaways from Lamb Weston’s conference call:

• North America outperformed with 12% volume growth and 5% net sales growth driven by customer wins, improved plant run rates and higher retention, which supported a tighter FY26 guidance and stronger operating execution.
• International markets remain stressed—Europe faces surplus potato supply and weak restaurant traffic, prompting a $33 million pre-tax write-off, the Munro plant closure in Argentina and production curtailments that materially pressured international EBITDA.
• Cost and cash strength: the company has already hit its $100 million FY26 savings goal and is tracking ahead of the $250 million FY28 target, while generating $596 million of cash from operations YTD, $339 million of free cash flow and maintaining ~$1.3 billion of liquidity.
• Price/mix and margin headwinds persist as price mix declined ~7% (partly from customer price/trade support and mix shifts), adjusted EBITDA fell $101 million YoY, and management expects Q4 gross margin to decline another 250–300 bps with ongoing mix pressure into FY27.

Lamb Weston Trading Down 4.2%

LW stock traded down $1.79 during midday trading on Wednesday, hitting $40.47. The stock had a trading volume of 2,033,801 shares, compared to its average volume of 3,195,352. The company’s 50-day moving average price is $45.33 and its 200 day moving average price is $52.06. The company has a debt-to-equity ratio of 2.08, a current ratio of 1.43 and a quick ratio of 0.64. The firm has a market cap of $5.62 billion, a PE ratio of 14.61, a price-to-earnings-growth ratio of 5.96 and a beta of 0.43. Lamb Weston has a 12-month low of $38.95 and a 12-month high of $67.07.

Wall Street Analysts Forecast Growth

A number of analysts have commented on the company. Bank of America decreased their target price on Lamb Weston from $66.00 to $53.00 and set a “neutral” rating on the stock in a research report on Monday, December 22nd. Stifel Nicolaus cut their price target on Lamb Weston from $63.00 to $50.00 and set a “hold” rating for the company in a research note on Monday, December 22nd. TD Cowen lowered their price objective on shares of Lamb Weston from $60.00 to $55.00 and set a “hold” rating on the stock in a research note on Monday, December 22nd. Wells Fargo & Company dropped their target price on shares of Lamb Weston from $68.00 to $54.00 and set an “overweight” rating for the company in a report on Tuesday, December 23rd. Finally, JPMorgan Chase & Co. reduced their price target on shares of Lamb Weston from $50.00 to $44.00 and set a “neutral” rating on the stock in a report on Tuesday, March 24th. Three equities research analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the company’s stock. According to MarketBeat.com, Lamb Weston has an average rating of “Hold” and an average target price of $51.50.

More Lamb Weston News

Here are the key news stories impacting Lamb Weston this week:

• Positive Sentiment: Lamb Weston raised the midpoint of its fiscal‑2026 net sales and EBITDA outlook and lowered expected 2026 capital expenditures — a signal of stronger near‑term cash flow versus prior guidance. Business Wire: Q3 Results & Guidance
• Positive Sentiment: Quarterly EPS ($0.72) and revenue ($1.56B) topped consensus estimates, providing a near‑term fundamental beat that supports valuation. Zacks: Q3 Earnings and Revenues Top Estimates
• Neutral Sentiment: Several analysts revised forecasts and positioned estimates ahead of the call; that trimmed uncertainty but didn’t deliver uniform upgrades. Watch analyst notes for follow‑through. Benzinga: Analysts Revise Forecasts
• Negative Sentiment: Profitability fell sharply year‑over‑year (net income and operating income down materially) and margins compressed due to higher costs and pricing pressure — the core reason investors are wary despite the beat. Blockonomi: Shrinking Margins
• Negative Sentiment: Deutsche Bank cut its price target to $40 and moved to a Hold; fresh downside to Street targets and mentions of international weakness/activist pressure add selling catalysts. AmericanBankingNews: DB Lowers Price Target

Insider Activity

In other Lamb Weston news, insider Jan Eli B. Craps acquired 50,000 shares of the firm’s stock in a transaction dated Friday, February 6th. The shares were acquired at an average price of $48.65 per share, for a total transaction of $2,432,500.00. Following the completion of the acquisition, the insider directly owned 300,000 shares of the company’s stock, valued at $14,595,000. This trade represents a 20.00% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. 0.29% of the stock is owned by company insiders.

Hedge Funds Weigh In On Lamb Weston

Several large investors have recently added to or reduced their stakes in LW. Price T Rowe Associates Inc. MD boosted its stake in Lamb Weston by 27.4% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 9,824,690 shares of the specialty retailer’s stock worth $411,558,000 after buying an additional 2,111,874 shares during the last quarter. State Street Corp increased its stake in shares of Lamb Weston by 1.1% during the 2nd quarter. State Street Corp now owns 5,801,585 shares of the specialty retailer’s stock valued at $300,812,000 after acquiring an additional 63,865 shares during the last quarter. Invesco Ltd. increased its stake in shares of Lamb Weston by 2.5% during the 3rd quarter. Invesco Ltd. now owns 3,286,305 shares of the specialty retailer’s stock valued at $190,869,000 after acquiring an additional 79,257 shares during the last quarter. BROOKFIELD Corp ON lifted its holdings in shares of Lamb Weston by 29.0% during the 4th quarter. BROOKFIELD Corp ON now owns 2,226,311 shares of the specialty retailer’s stock worth $93,260,000 after acquiring an additional 500,000 shares during the period. Finally, Dimensional Fund Advisors LP lifted its holdings in shares of Lamb Weston by 8.7% during the 4th quarter. Dimensional Fund Advisors LP now owns 2,141,037 shares of the specialty retailer’s stock worth $89,688,000 after acquiring an additional 172,165 shares during the period. 89.56% of the stock is currently owned by hedge funds and other institutional investors.

Lamb Weston Company Profile

Lamb Weston, traded on the NYSE under the symbol LW, is a leading global processor and supplier of frozen potato products. The company’s portfolio includes a variety of potato-based items such as French fries, potato wedges, hash browns and specialty cuts tailored to the foodservice and retail grocery channels. Lamb Weston serves quick-service restaurants, full-service operators, grocery chains and food distributors, offering customized product formats, packaging solutions and seasoning options to meet evolving customer demands.

Founded in 1950 and headquartered in Eagle, Idaho, Lamb Weston has grown from a regional processor into one of the world’s largest producers of frozen potato products.