Lamb Weston (NYSE:LW) Posts Earnings Results, Beats Expectations By $0.21 EPS

Key Points

• Lamb Weston reported earnings of $0.74 EPS, exceeding analyst expectations of $0.53 by $0.21, although this is a decrease from last year's $0.88 EPS.
• The company's stock rose 4.7% in midday trading, reaching $58.26, with a market capitalization of $8.12 billion.
• Lamb Weston declared a quarterly dividend of $0.37 per share, with a yield of 2.5%, to be paid on November 28th.

Lamb Weston (NYSE:LW - Get Free Report) announced its earnings results on Tuesday. The specialty retailer reported $0.74 earnings per share for the quarter, topping analysts' consensus estimates of $0.53 by $0.21, Briefing.com reports. Lamb Weston had a return on equity of 27.99% and a net margin of 5.54%.During the same period last year, the company posted $0.88 EPS. Lamb Weston's quarterly revenue was up .3% compared to the same quarter last year. Lamb Weston updated its FY 2026 guidance to EPS.

Lamb Weston Stock Up 4.7%

Shares of Lamb Weston stock traded up $2.59 during midday trading on Tuesday, hitting $58.26. The company had a trading volume of 2,912,156 shares, compared to its average volume of 2,233,575. The company has a debt-to-equity ratio of 2.12, a quick ratio of 0.68 and a current ratio of 1.38. The stock has a market capitalization of $8.12 billion, a P/E ratio of 23.36, a P/E/G ratio of 2.25 and a beta of 0.49. The company has a 50 day moving average of $55.68 and a 200 day moving average of $54.00. Lamb Weston has a 52-week low of $47.87 and a 52-week high of $83.98.

Lamb Weston Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, November 28th. Investors of record on Friday, October 31st will be given a dividend of $0.37 per share. This represents a $1.48 dividend on an annualized basis and a yield of 2.5%. The ex-dividend date of this dividend is Friday, October 31st. Lamb Weston's dividend payout ratio (DPR) is 58.96%.

Wall Street Analyst Weigh In

LW has been the topic of a number of research analyst reports. Wells Fargo & Company increased their target price on Lamb Weston from $65.00 to $66.00 and gave the company an "overweight" rating in a research note on Thursday, July 24th. Barclays upped their price objective on Lamb Weston from $61.00 to $68.00 and gave the stock an "overweight" rating in a report on Friday, July 25th. Bank of America dropped their target price on Lamb Weston from $60.00 to $56.00 and set a "neutral" rating for the company in a research report on Wednesday, June 18th. Finally, JPMorgan Chase & Co. started coverage on Lamb Weston in a research report on Wednesday, August 20th. They issued a "neutral" rating and a $57.00 target price for the company. Three analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company's stock. According to MarketBeat.com, Lamb Weston currently has an average rating of "Hold" and an average price target of $65.33.

Institutional Investors Weigh In On Lamb Weston

A number of institutional investors have recently made changes to their positions in LW. Ion Asset Management Ltd. purchased a new position in Lamb Weston in the 2nd quarter worth $84,379,000. Royal London Asset Management Ltd. increased its holdings in shares of Lamb Weston by 4,547.0% in the second quarter. Royal London Asset Management Ltd. now owns 340,394 shares of the specialty retailer's stock valued at $17,649,000 after purchasing an additional 333,069 shares during the period. Man Group plc acquired a new position in shares of Lamb Weston in the second quarter valued at about $15,494,000. Amundi increased its holdings in shares of Lamb Weston by 405.9% in the second quarter. Amundi now owns 256,794 shares of the specialty retailer's stock valued at $13,548,000 after purchasing an additional 206,034 shares during the period. Finally, Brevan Howard Capital Management LP purchased a new stake in Lamb Weston in the second quarter valued at approximately $6,463,000. Hedge funds and other institutional investors own 89.56% of the company's stock.

About Lamb Weston

Lamb Weston Holdings, Inc produces, distributes, and markets frozen potato products worldwide. The company operates through four segments: Global, Foodservice, Retail, and Other. It offers frozen potatoes, commercial ingredients, and appetizers under the Lamb Weston brand, as well as under various customer labels.

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