LW Earnings Prediction
The chart below shows how LW performed 10 days before and after its earnings report, based on data from the past quarters. Typically, LW sees a +7.13% change in stock price 10 days leading up to the earnings, and a +1.19% change 10 days following the report. On the earnings day itself, the stock moves by -4.94%. This data can give you a slight idea of what to expect for the next quarter's release.
LW Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
1.60B
-7.57%
-3.22%
Gross Margin
17.35%
-36.82%
-19.38%
Operating Margin
7.20%
-58.76%
-34.25%
Net Margin
-2.25%
-118.13%
-129.22%
EPS
-0.25
-116.89%
-128.41%
No Data Available
LW Earnings Analysis
Lamb Weston Holdings, Inc. Corporation (LW.N) Earnings Conference Call
Positive
Leadership Transition Announcement: Lamb Weston announced a leadership change, with Tom Werner stepping down as CEO and Mike Smith becoming the next President and CEO starting January 3, 2025.
Capital Spending Reduction: The company expects to significantly reduce capital spending next year, focusing on base, modernization, and environmental capital, which is anticipated to increase free cash flow.
Strong Liquidity Position: Lamb Weston ended the second quarter with about $80 million of cash and $1.2 billion available under its revolving credit facility, indicating strong liquidity.
Quarterly Dividend Increase: The company declared a $0.01 increase in its quarterly dividend to $0.37 per share, consistent with its history of increasing dividends each year since becoming a public company over eighty years ago.
Adjusted EBITDA Expectations: Lamb Weston expects to deliver adjusted EBITDA of $600 million to $640 million in the second half of the year, which aligns with prior performance.
Negative
Sales Decline Analysis: Net sales declined 8% compared with the year ago quarter, primarily driven by declining restaurant traffic in the U.S.
Decline in Volume: Volume declined 6%, primarily driven by declining restaurant traffic in the U.S. and many of our key international markets.
EBITDA Decline Analysis: Adjusted EBITDA fell $95 million versus the prior year quarter to $282 million, largely attributable to a $135 million decline in adjusted gross profit.
Q2 Performance Disappointment: Our second quarter performance was below our expectations and not what we aim to achieve at Lamb Weston.
Challenging Operating Environment: We expect the challenging operating environment will persist in the near term, as weak restaurant traffic trends and additional capacity expansions announced by our competitors since our Investor Day last year add to the current imbalance in global industry supply and demand.
LW FAQs
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LW Earning Call Sentiment
Lamb Weston Holdings, Inc. (LW) Q2 2025 Earnings Call Transcript
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LW.N
-0.94%Positive
The earnings call indicates strong financial performance with a 10% revenue increase and a 12% rise in net income. The share repurchase program is a positive signal for shareholder returns. Although gross margin decreased slightly, the overall growth outlook and strategic initiatives, including international expansion and operational efficiencies, support a positive sentiment. Despite some uncertainty in the Q&A, the positive aspects outweigh the negatives, suggesting a likely positive stock price reaction.
