Eagle, Idaho-based Lamb Weston Holdings, Inc. (LW) engages in the production, distribution, and marketing of frozen potato products. It offers frozen potatoes, commercial ingredients, and appetizers under the Lamb Weston brand, as well as under various customer labels. With a market cap of $7.4 billion, Lamb Weston’s operations span North America and internationally.
The packaged foods giant is expected to announce its Q4 earnings on Wednesday, Jul. 23. Ahead of the event, analysts expect Lamb Weston to report a profit of $0.65 per share, down 16.7% from $0.78 per share reported in the year-ago quarter. The company has surpassed or matched the Street’s earnings projections in two of the past four quarters while missing on two other occasions.
For the full fiscal 2025, LW’s EPS is expected to come in at $3.14, down 38.2% from $5.08 reported in fiscal 2024. While in fiscal 2026, its earnings are expected to recover 9.6% year-over-year to $3.44 per share.
LW stock has plummeted 36.2% over the past 52 weeks, substantially underperforming the S&P 500 Index’s ($SPX) 13% gains and the Consumer Staples Select Sector SPDR Fund’s (XLP) 7.4% returns during the same time frame.
Nevertheless, Lamb Weston’s stock prices soared more than 10% following the release of its better-than-expected Q1 results on Apr. 3. Driven by notable growth in volumes, the company’s net sales for the quarter increased 4.3% year-over-year to $1.5 billion, exceeding the Street’s expectations by 1.4%. Meanwhile, the company’s adjusted EPS dropped 8.3% year-over-year to $1.10. However, the drop was already expected; in fact, its earnings surpassed the consensus estimates by a staggering 26.4%, boosting investor confidence.
The stock currently holds a consensus “Moderate Buy” rating overall. Of the 11 analysts covering the LW stock, opinions include four “Strong Buys” and seven “Holds.” Its mean price target of $63.18 suggests a 19.7% upside potential from current price levels.
