Zacks Research Forecasts Lamb Weston's Q1 Earnings (NYSE:LW)

Key Points

• Zacks Research cut its Q1 2027 EPS forecast for Lamb Weston to $0.58 from $0.62, while maintaining a longer-term growth outlook with FY2027, FY2028 and FY2029 estimates of $3.04, $3.42 and $3.78, respectively.
• Lamb Weston’s latest quarter exceeded expectations, reporting $0.87 EPS versus the $0.63 consensus and $1.77 billion in revenue, up 5.6% year over year. The company provided FY2027 guidance of $2.95-$3.25 EPS.
• Analyst sentiment remains cautious: the stock has a consensus “Hold” rating and a $53.36 price target, despite several firms raising their targets. Lamb Weston also declared a quarterly dividend of $0.38 per share, yielding about 2.9%.

Lamb Weston (NYSE:LW - Free Report) - Investment analysts at Zacks Research dropped their Q1 2027 earnings per share (EPS) estimates for shares of Lamb Weston in a research note issued to investors on Friday, August 7th. Zacks Research analyst Team now expects that the specialty retailer will post earnings per share of $0.58 for the quarter, down from their prior estimate of $0.62. The consensus estimate for Lamb Weston's current full-year earnings is $3.06 per share. Zacks Research also issued estimates for Lamb Weston's Q2 2027 earnings at $0.77 EPS, Q4 2027 earnings at $0.77 EPS, FY2027 earnings at $3.04 EPS, Q1 2028 earnings at $0.71 EPS, Q2 2028 earnings at $0.86 EPS, Q3 2028 earnings at $1.02 EPS, Q4 2028 earnings at $0.84 EPS, FY2028 earnings at $3.42 EPS and FY2029 earnings at $3.78 EPS.

Lamb Weston (NYSE:LW - Get Free Report) last issued its quarterly earnings data on Friday, July 24th. The specialty retailer reported $0.87 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.63 by $0.24. Lamb Weston had a net margin of 4.39% and a return on equity of 23.33%. The firm had revenue of $1.77 billion for the quarter, compared to analyst estimates of $1.70 billion. During the same period in the previous year, the firm earned $0.87 EPS. Lamb Weston's 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.

A number of other equities analysts have also recently weighed in on LW. Stifel Nicolaus increased their price objective on shares of Lamb Weston from $45.00 to $52.00 and gave the stock a "hold" rating in a research report on Monday, July 27th. Wells Fargo & Company boosted their target price on Lamb Weston from $54.00 to $57.00 and gave the company an "overweight" rating in a research report on Monday, July 27th. Barclays upped 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. TD Cowen lifted their price objective on Lamb Weston from $40.00 to $52.00 and gave the company a "hold" rating in a research note on Tuesday, July 28th. Finally, Wall Street Zen upgraded Lamb Weston from a "hold" rating to a "buy" rating in a report on Saturday, August 1st. Three research analysts have rated the stock with a Buy rating and eleven have given a Hold rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Hold" and a consensus price target of $53.36.

Lamb Weston Price Performance

Lamb Weston stock opened at $52.19 on Monday. The company's 50 day simple moving average is $46.78 and its 200-day simple moving average is $45.05. The company has a market capitalization of $7.18 billion, a price-to-earnings ratio of 25.09, a price-to-earnings-growth ratio of 2.33 and a beta of 0.46. Lamb Weston has a 1 year low of $37.62 and a 1 year high of $67.07. The company has a debt-to-equity ratio of 1.97, a quick ratio of 0.74 and a current ratio of 1.42.

Hedge Funds Weigh In On Lamb Weston

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. BlackRock Inc. purchased a new stake in shares of Lamb Weston during the second quarter worth approximately $730,276,000. Norges Bank purchased a new position in Lamb Weston in the fourth quarter worth approximately $125,662,000. M&T Bank Corp lifted its stake in Lamb Weston by 45,177.0% in the fourth quarter. M&T Bank Corp now owns 2,835,245 shares of the specialty retailer's stock worth $118,768,000 after acquiring an additional 2,828,983 shares during the last quarter. Price T Rowe Associates Inc. MD grew its holdings in Lamb Weston by 27.4% during 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 acquiring an additional 2,111,874 shares in the last quarter. Finally, Ion Asset Management Ltd. acquired a new position in Lamb Weston during the 2nd quarter worth approximately $84,379,000. Hedge funds and other institutional investors own 89.56% of the company's stock.

Lamb Weston Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, September 4th. Investors of record on Friday, August 7th will be paid a dividend of $0.38 per share. This represents a $1.52 annualized dividend and a yield of 2.9%. The ex-dividend date of this dividend is Friday, August 7th. Lamb Weston's dividend payout ratio is presently 73.08%.

Key Lamb Weston News

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

• Positive Sentiment: Longer-term earnings outlook improved: Zacks Research raised its FY2027 EPS forecast to $3.04 from $2.99 and its FY2028 estimate to $3.42 from $3.37. It also increased projections for Q2 2027, Q4 2027 and Q4 2028. Zacks expects FY2029 EPS of $3.78, suggesting improving earnings power over the longer term. Zacks Research estimate revisions
• Neutral Sentiment: Estimate changes were mixed: Zacks reduced its forecasts for Q1 2027 EPS to $0.58 from $0.62, Q1 2028 EPS to $0.71 from $0.74, Q2 2028 EPS to $0.86 from $0.87 and Q3 2028 EPS to $1.02 from $1.04. The revisions indicate some near- and medium-term pressure despite the improved full-year outlook. Lamb Weston earnings estimate revisions
• Positive Sentiment: Future earnings remain above current-year expectations: Zacks’ FY2028 and FY2029 EPS forecasts of $3.42 and $3.78 compare with the current-year consensus estimate of $3.05, reinforcing the potential for earnings growth if operating conditions improve. Lamb Weston earnings forecasts
• Negative Sentiment: Executive sold shares: An executive disposed of 3,820 Lamb Weston shares at $53.18 each, representing approximately $203,100. The transaction reduced the insider’s total equity holdings by 6% and direct holdings by 11%, potentially weighing on sentiment, although a single insider sale does not necessarily signal a change in business fundamentals. Executive Parts Ways With 3,820 Shares of Lamb Weston Stock

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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