Lamb Weston (NYSE:LW) to Issue $0.38 Quarterly Dividend

Key Points

• Lamb Weston announced a quarterly dividend of $0.38 per share, payable on September 4 to shareholders of record as of August 7. The dividend implies an annualized yield of about 3.1%.
• The company has raised its dividend for 7 straight years and currently has a payout ratio of 39.8%, suggesting the dividend is covered by earnings. Analysts expect it to remain sustainable, with a projected future payout ratio of 49.0%.
• Lamb Weston also reported better-than-expected quarterly results, earning $0.87 per share versus the $0.63 consensus estimate on revenue of $1.77 billion. The stock traded up 0.8% on the news, while Wall Street’s consensus rating remains Hold.

Lamb Weston (NYSE:LW - Get Free Report) announced a quarterly dividend on Friday, July 24th. Shareholders of record on Friday, August 7th will be given a dividend of 0.38 per share by the specialty retailer on Friday, September 4th. This represents a c) annualized dividend and a yield of 3.1%. The ex-dividend date of this dividend is Friday, August 7th.

Lamb Weston has increased its dividend payment by an average of 0.1%annually over the last three years and has increased its dividend annually for the last 7 consecutive years. Lamb Weston has a dividend payout ratio of 39.8% meaning its dividend is sufficiently covered by earnings. Research analysts expect Lamb Weston to earn $3.10 per share next year, which means the company should continue to be able to cover its $1.52 annual dividend with an expected future payout ratio of 49.0%.

Lamb Weston Trading Up 0.8%

Shares of Lamb Weston stock traded up $0.39 during trading hours on Friday, hitting $49.57. The company's stock had a trading volume of 5,039,944 shares, compared to its average volume of 2,420,118. Lamb Weston has a 1-year low of $37.62 and a 1-year high of $67.07. The business has a fifty day moving average of $44.62 and a 200 day moving average of $44.22. The company has a market capitalization of $6.84 billion, a PE ratio of 23.17, a P/E/G ratio of 6.37 and a beta of 0.47. The company has a quick ratio of 0.69, a current ratio of 1.46 and a debt-to-equity ratio of 1.99.

Lamb Weston (NYSE:LW - Get Free Report) last posted its earnings results on Friday, July 24th. The specialty retailer reported $0.87 earnings per share for the quarter, beating the consensus estimate of $0.63 by $0.24. Lamb Weston had a net margin of 4.61% and a return on equity of 23.77%. The business had revenue of $1.77 billion for the quarter, compared to analyst estimates of $1.70 billion. During the same quarter in the previous year, the business posted $0.87 EPS. The business's quarterly revenue was up 5.6% on a year-over-year basis. Lamb Weston has set its FY 2027 guidance at 2.950-3.250 EPS. As a group, equities analysts forecast that Lamb Weston will post 2.85 EPS for the current year.

Wall Street Analyst Weigh In

Several equities research analysts have recently weighed in on the company. JPMorgan Chase & Co. upped their target price on Lamb Weston from $43.00 to $48.00 and gave the stock a "neutral" rating in a research report on Thursday, July 9th. BNP Paribas Exane reduced their price target on Lamb Weston from $48.00 to $41.00 and set a "neutral" rating on the stock in a research report on Thursday, April 2nd. Stephens assumed coverage on Lamb Weston in a report on Wednesday, May 27th. They issued an "equal weight" rating and a $46.00 price target for the company. Deutsche Bank Aktiengesellschaft lowered their price objective on shares of Lamb Weston from $46.00 to $40.00 and set a "hold" rating for the company in a research report on Monday, March 30th. Finally, Bank of America reduced their target price on shares of Lamb Weston from $49.00 to $47.00 and set a "neutral" rating on the stock in a research report on Thursday, April 2nd. Three equities research analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, Lamb Weston presently has a consensus rating of "Hold" and an average target price of $49.27.

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.

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