Lamb Weston Holdings, Inc. produces, distributes, and markets frozen potato products in the United States, Canada, Mexico, and internationally. The company offers frozen potatoes, commercial ingredients, and appetizers under the Lamb Weston brand, customer labels, and owned or licensed brands such as Grown in Idaho and Alexia. Its products are sold through internal sales personnel and independent brokers, agents, and distributors to quick service and full-service restaurants, wholesale, grocery, mass merchants, club retailers, non-commercial channels, specialty retailers, foodservice distributors, and institutions. Incorporated in 1950, Lamb Weston Holdings, Inc. is headquartered in Eagle, Idaho.
Lamb Weston's weak guidance meets a surprise earnings beat
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Weak FY27 guidance and falling profit Lamb Weston's quarterly profit fell and its fiscal 2027 guidance of $2.95-$3.25 per share with only 0-1% sales growth disappointed investors, sending shares down 3.48% before the market opened. The weak outlook reflects slipping french fry sales and pressure on earnings.
This is the core negative event that set the tone for the period and pushed LW shares down.
North America volume growth drives a 13% share gain LW shares rose 13.1% in a month as North America sales volume jumped 11% on new customer contracts, market-share gains and strong retention. Segment profit rose 17%. But price/mix fell 3% and international profit plunged 81%, showing the recovery is uneven.
This explains the main positive force behind LW's price rebound during the period.
Costs and price/mix still weigh on results Before the Q1 report, analysts expected revenue and earnings to decline, with adjusted EBITDA down in the low-teens range. Higher potato and edible-oil costs and price/mix headwinds in North America and tough competition in Europe were the main drags, partly offset by volume growth.
This shows the real cost pressures that kept a lid on LW's recovery despite volume gains.
Q1 earnings beat and raised full-year outlook Lamb Weston reported Q1 adjusted EPS of $0.75, well above the $0.59 consensus, on 1% sales growth. It raised its fiscal 2027 sales growth forecast to low single digits and lifted its EPS outlook to $3.05-$3.35, a clear sign that business conditions are improving faster than expected.
This is the latest and most important positive development, directly lifting LW's earnings outlook.
Uber to Buy ezCater for $2.3B as Marvell Lifts FY28 Revenue Guidance to $20B
Uber Technologies agreed to acquire Boston-based corporate catering platform ezCater for $2.3 billion in an all-cash deal, expanding the ride-hailing company into the workplace dining market. ezCater runs an online catering marketplace connecting businesses with more than 140,000 restaurants nationwide and generated over $2.5 billion in gross bookings over the trailing twelve months, with high-teens year-over-year growth. Separately, Marvell Technology shares jumped 10% in early trading after the chipmaker raised its fiscal 2028 revenue guidance to $20 billion at its investor day, up from a prior $18 billion and above analyst estimates of $18.2 billion; Marvell also expects customer revenue in fiscal 2029 to rise 200% or more, with total revenue reaching between $70 billion and $90 billion by fiscal 2031. Lamb Weston reported first-quarter adjusted EPS of $0.75, beating the $0.59 consensus, on sales up 1%, and raised its fiscal 2027 sales growth forecast to low single digits from flat to 1% while lifting its EPS outlook to $3.05 to $3.35. NASA is preparing to buy rocket launches in bulk to secure scarce capacity for a permanent human base on the moon, a $30 billion program, evaluating purchases of four or five launches at a time with an initial round expected soon, according to moon base program manager Carlos García-Galán.
Lamb Weston Q1 Fiscal 2027 Earnings Preview: Estimates Point to Decline
Lamb Weston Holdings is expected to report a top-and bottom-line decline when it posts first-quarter fiscal 2027 earnings on Oct. 6, with the Zacks Consensus Estimate for revenues pegged at $1.7 billion, a 0.3% decrease from the year-ago reported number, and earnings of 59 cents a share, down 20.3% year over year. The consensus earnings mark has risen by a penny over the past seven days, and Lamb Weston carries a trailing four-quarter surprise of 24.6%, on average. Management expects first-quarter net sales to be flat and adjusted EBITDA to decline in the low-teens range before growth improves through the remainder of the year, citing carryover effects of prior-year potato costs, elevated edible-oil costs, and price/mix headwinds in North America and competitive conditions in EMEA. Partly offsetting these pressures, North America's continued sales-volume growth and market-share gains, customer wins, strong retention, and improved supply-chain execution are expected to support results. Lamb Weston currently carries a Zacks Rank #3 and an Earnings ESP of +3.61%, which the model says predicts an earnings beat.
LW · Capital · Negative Q1 FY2027 estimates point to revenue and EPS declines, with adjusted EBITDA expected down low-teens on potato and edible-oil costs and price/mix headwinds.
Hershey Tops Q2 Estimates as Shelf-Stable Food Stocks Slide
Hershey reported second-quarter revenues of $2.79 billion, up 6.6% year on year and 5.7% above analysts' expectations, the largest estimate beat among the 17 shelf-stable food stocks tracked. The company also beat analysts' gross margin and organic revenue estimates, and CEO Kirk Tanner said reported net sales rose 8.7% in the first half with organic net sales up 5.8%. J. M. Smucker posted the group's best quarter, with revenues of $2.22 billion, up 5% year on year and 4.3% ahead of expectations, while Hain Celestial had the weakest, with revenues of $263.1 million, down 27.6% year on year and 2.2% below estimates. Across the group, revenues beat consensus by 0.8% while next quarter's revenue guidance came in 3.6% below, and share prices have fallen 8.9% on average since the latest results. Hershey shares are down 8.6% since reporting and trade at $168.15, J. M. Smucker is down 4.9% at $119.34, Hain Celestial is down 9.8% at $0.56, Utz is flat at $14.21, and Lamb Weston is down 3.4% at $47.51.
Campbell's Q2 Earnings Preview: Revenue Expected to Drop 7.6%
Campbell's is set to report its fiscal second-quarter earnings before the market opens on Thursday, with analysts expecting a 7.6% year-over-year decline in revenue, a reversal from the 1.2% growth recorded in the same quarter last year. The packaged food company missed revenue expectations last quarter, posting $2.37 billion in sales, down 4.4% year on year, though it did beat on gross margin estimates. Analysts have generally maintained their estimates over the past month, and Campbell's shares have risen 5.9% in that period, trading at $23.69 against an average price target of $21.88. In the broader shelf-stable food segment, peers J. M. Smucker and Lamb Weston have already reported revenue growth of 5% and 5.6%, respectively, beating expectations, with their shares rising 5.1% and 8% after results.
CPB · Capital · Negative Analysts expect Campbell's Q2 revenue to fall 7.6% year-over-year, a reversal from prior growth, ahead of its earnings report.
LW · Capital · Positive Lamb Weston already reported 5.6% revenue growth, beating expectations, with shares rising 8% after results.
SJM · Capital · Positive J. M. Smucker already reported 5% revenue growth, beating expectations, with shares rising 5.1% after results.
Lamb Weston Shares Gain 13.1% in a Month on Volume Growth
Lamb Weston Holdings shares have gained 13.1% in the past four weeks as operating trends improve, especially in North America. The advance follows six consecutive quarters of sales-volume growth, with consolidated volume up 7% in fiscal fourth-quarter 2026 and North America volume up 11% on customer contract wins, share gains, strong retention and an extra week. North America net sales increased 9% to $1,206.2 million, and segment adjusted EBITDA rose 17% to $304.7 million, while McDonald's represented approximately 15% of fiscal 2026 net sales. Management expects North America volume to increase in the low single digits in fiscal 2027, with flat global restaurant traffic, and the company exceeded its fiscal 2026 milestone of $100 million in savings under a three-year Cost Savings Program targeting at least $250 million of annualized run-rate savings by the end of fiscal 2028. However, companywide price/mix declined 3% in fiscal fourth-quarter 2026, and International adjusted EBITDA dropped 81% to $11.8 million, with fiscal 2027 guidance still calling for International net sales to decline in the low single digits.
Coors Light and Cheez-It team up for beer cheese crackers
Coors Light and Cheez-It are partnering to launch a beer cheese flavored cracker. The limited-time snack will hit shelves in August with a suggested retail price of $4.99. According to a news release from the Mars Inc owned brand, the new Cheez-It captures the flavor of classic beer cheese spread in cracker form. In other food news, Midwest Poultry Services has voluntarily recalled about 19 million total individual eggs, or about 1.6 million dozen eggs, due to potential salmonella contamination. The recalled eggs, sold under brand names like Kroger, Berkshire, Simple Truth and Country Morning, are white and brown cage-free eggs produced in Texas with sell-by or best-by dates between July 20th and August 17th of this year. Additionally, Lamb Weston, the potato supplier to restaurants like McDonald's, issued a light outlook as french fry sales slip, with the company now expecting sales to grow just 1% in fiscal 2027.
Lamb Weston forecasts fiscal 2027 adjusted EPS of $2.95 to $3.25 on flat to 1% net sales growth
Lamb Weston guided fiscal 2027 adjusted earnings per share in a range of $2.95 to $3.25, with net sales expected to be flat to up 1% versus a 52-week adjusted base of $6.5 billion for fiscal 2026. Chief Financial Officer James Gray also projected adjusted operating income of $720 million to $800 million and adjusted EBITDA of $1.1 billion to $1.2 billion, while warning that first-quarter EBITDA would decline in the low teens before growth resumes later in the year. The outlook follows a fourth quarter in which company net sales rose 6%, driven by a 7% increase in volume and a 2% favorable currency impact, partially offset by a 3% decline in price and mix. Management highlighted near-term pressure from edible oil and freight inflation, as well as carryover costs from the prior potato crop, and announced the planned closure of a facility in the Netherlands that represents about 10% of EMEA production capacity. Executive Chair Jan Eli B. Craps said the company is evaluating all options for its international footprint, including M&A, partnerships, and divestitures, with a fuller strategy update expected at an Investor Day in early calendar 2027.
Lamb Weston initiates fiscal 2027 guidance and declares quarterly dividend
Lamb Weston Holdings initiated its fiscal 2027 outlook, projecting adjusted earnings of $2.95 to $3.25 per share and net sales growth of 0.0 to 1.0 percent. The company also declared a quarterly dividend of $0.38 per share, payable on September 4, 2026 to shareholders of record as of August 7, 2026. The announcement accompanied the release of fourth-quarter financial results on Friday. In pre-market trading, shares were down 3.48 percent at $47.50.
LW · Capital · Negative Fiscal 2027 guidance of $2.95-$3.25 EPS and 0-1% sales growth disappointed investors, causing shares to fall 3.48% in pre-market.
StockStory flags Kulicke and Soffa, Lamb Weston, and American Express Global Business Travel as profitable but risky
StockStory identifies three profitable companies that may face headwinds. Kulicke and Soffa, with a trailing 12-month GAAP operating margin of 6.7%, has seen annual sales decline 3.9% over five years and a 20.2 percentage point drop in free cash flow margin. Lamb Weston, at a 9.3% margin, faces flat revenue expectations and a 9.8% annual EPS contraction over three years. American Express Global Business Travel, with a 2.7% margin, grew revenue 12.5% annually over two years but saw its operating margin fall 3.7 percentage points as expenses rose.
Three consumer stocks are flagged as falling short: Reynolds, Lamb Weston, and Vital Farms. Reynolds has struggled with flat unit sales and a gross margin of 25.4% below competitors, with flat projected sales. Lamb Weston saw no organic revenue growth and a 9.8% annual EPS decline over three years, with flat demand forecast. Vital Farms faces subscale operations with $784.4 million in revenue, flat expected revenue, and a 14-percentage-point drop in free cash flow margin.
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