Lamb Weston Holdings, Inc. (LW), based in Eagle, Idaho, 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 $8.9 billion, Lamb Weston’s operations span the United States, Canada, Mexico, and internationally. It is expected to announce its Q3 earnings after the market closes on April 3.
Ahead of the event, analysts expect Lamb Weston to report a profit of $0.88 per share, down 26.7% from $1.20 per share reported in the year-ago quarter. The company has failed to surpass Wall Street’s EPS projections in three of the past four quarters while beating on another occasion.
Looking ahead to fiscal 2025, analysts expect Lamb Weston to report an EPS of $3.10, down 39% from $5.08 in fiscal 2024. However, in fiscal 2026, its EPS is projected to grow 17.4% year-over-year to $3.64.
LW stock has plummeted 42.1% in over the past year, substantially underperforming the S&P 500 Index’s ($SPX) 24.1% gains and the Consumer Staples Select Sector SPDR Fund’s (XLP) 8.4% returns on a YTD basis.
Despite its grim price action over the past year, Lamb Weston shares rose over 2% on Dec. 27 to lead S&P 500 gainers following an amended 13D filing revealing that activist investor Jana Partners LLC has acquired a significant stake in the company, intensifying investor interest in the company's future direction.
The consensus opinion on LW stock is moderately upbeat, with an overall “Moderate Buy” rating. Out of 11 analysts covering the stock, four suggest a “Strong Buy,” and seven recommend a “Hold” rating.
The average price target of $68.45 suggests a potential upside of 13.5% from current price levels.
