Lamb Weston (NYSE:LW) Announces Earnings Results

Key Points

• Lamb Weston exceeded quarterly expectations, reporting EPS of $0.75 versus the $0.59 consensus and revenue of $1.67 billion versus $1.65 billion expected.
• The company updated its FY 2027 EPS guidance to a range of $3.05–$3.35, while analysts remained cautious overall with a consensus “Hold” rating and a $52.45 price target.
• Lamb Weston declared a quarterly dividend of $0.38 per share, equal to $1.52 annually and a 3.4% yield; investors continue to monitor cost inflation, pricing pressure and potentially weaker sales volumes.

Lamb Weston (NYSE:LW - Get Free Report) posted its quarterly earnings data on Tuesday. The specialty retailer reported $0.75 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.59 by $0.16, FiscalAI reports. Lamb Weston had a net margin of 4.39% and a return on equity of 23.33%. The firm had revenue of $1.67 billion for the quarter, compared to the consensus estimate of $1.65 billion. Lamb Weston updated its FY 2027 guidance to 3.050-3.350 EPS.

Lamb Weston Price Performance

Lamb Weston stock opened at $44.74 on Tuesday. Lamb Weston has a one year low of $37.62 and a one year high of $67.07. The business has a fifty day moving average price of $50.13 and a 200-day moving average price of $45.96. The company has a debt-to-equity ratio of 1.97, a current ratio of 1.42 and a quick ratio of 0.74. The firm has a market capitalization of $6.15 billion, a P/E ratio of 21.51, a PEG ratio of 1.94 and a beta of 0.49.

Lamb Weston Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Friday, September 4th. Shareholders of record on Friday, August 7th were given a dividend of $0.38 per share. The ex-dividend date was Friday, August 7th. This represents a $1.52 annualized dividend and a dividend yield of 3.4%. Lamb Weston's dividend payout ratio is currently 73.08%.

Key Headlines Impacting Lamb Weston

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

• Positive Sentiment: Analysts are watching for another earnings beat, with potential support from volume growth, market-share gains and productivity improvements. Lamb Weston’s recently reported results also exceeded consensus estimates for both earnings and revenue, reinforcing optimism ahead of the release. Lamb Weston earnings preview
• Positive Sentiment: Wells Fargo maintained an “overweight” rating and set a $54 price target, implying substantial potential upside from recent trading levels despite reducing its previous target from $57. The favorable rating and estimate revisions may be contributing to the stock’s recent strength. Lamb Weston stock price target lowered at Wells Fargo
• Neutral Sentiment: The main near-term catalyst is the earnings announcement, which is expected to clarify whether Lamb Weston’s recent pattern of stronger profits despite softer sales can continue. Investors will likely focus on demand, pricing, margins and full-year guidance. Lamb Weston Q1 2027 earnings preview
• Negative Sentiment: Pre-earnings commentary highlights risks from cost inflation and pricing pressure. Revenue weakness remains a concern, particularly if lower sales volumes offset efficiency gains or if management issues cautious guidance. LW Q1 earnings surprise streak preview

Analyst Ratings Changes

Several equities research analysts have recently issued reports on LW shares. Weiss Ratings raised Lamb Weston from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Tuesday, July 28th. Deutsche Bank Aktiengesellschaft reissued a "hold" rating and set a $52.00 price objective on shares of Lamb Weston in a report on Monday, July 27th. Stifel Nicolaus upped their price target on Lamb Weston from $45.00 to $52.00 and gave the company a "hold" rating in a research report on Monday, July 27th. Barclays increased their price target on Lamb Weston from $50.00 to $56.00 and gave the stock an "overweight" rating in a research note on Monday, July 27th. Finally, Stephens lowered their price objective on Lamb Weston from $55.00 to $50.00 and set an "equal weight" rating on the stock in a research note on Monday, September 28th. Three investment analysts have rated the stock with a Buy rating and ten have given a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus price target of $52.45.

About Lamb Weston

Lamb Weston Holdings, Inc NYSE: LW is a global producer and marketer of frozen potato products. The company supplies French fries, potato wedges, hash browns, potato rounds, mashed potatoes and other specialty potato products to restaurants, foodservice distributors, retailers and food manufacturers.

Its product portfolio includes conventional and specialty frozen potato offerings, as well as sweet potato products and appetizer items. Lamb Weston sells products under its Lamb Weston and Grown in Idaho brands, while also providing private-label products for retail and foodservice customers.

The company's history dates to the 1950s, when it began producing frozen potato products in the Pacific Northwest.

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