Lamb Weston Faces Challenging Forecast Ahead of Earnings Announcement

EAGLE, Idaho – Lamb Weston Holdings, Inc., a major producer of frozen potato products, is set to announce its fiscal 2025 earnings before the market opens on Thursday, April 3. Analysts expect the company to report earnings per share (EPS) of $0.87 on a diluted basis, marking a 27.5% decline from $1.20 per share in the same quarter last year.

The company, which offers a variety of potato products including fries, oven roasted potatoes, and chips, has struggled with earnings consistency, having missed consensus estimates in three of the last four quarters. In one exception, it managed to meet or exceed forecasts.

For the fiscal year, Lamb Weston is projected to report a total EPS of $3.09, which would represent a significant 39.2% drop from the previous year’s figure of $5.08. However, forecasts indicate a potential rebound in fiscal 2026, with expected EPS growth of 15.9% year-over-year to $3.58.

The stock has notably underperformed the S&P 500 Index, which has risen by 7.4% over the past 52 weeks. Lamb Weston shares have plummeted 49.2% in the same period, indicating a challenging operating environment for the company.

Investors were particularly concerned when Lamb Weston reported its second-quarter earnings on December 19, 2024, resulting in a more than 20% drop in share price. The reported adjusted EPS was down 54.5% year-over-year to $0.66, while revenue decreased by 7.6% to $1.6 billion.

Despite the recent struggles, consensus opinion among analysts remains cautiously optimistic with a “Moderate Buy” rating overall for LW stock. Out of 11 analysts covering the stock, four have recommended “Strong Buy,” and seven suggest “Hold.” The average price target for Lamb Weston stands at $65.73, suggesting a potential upside of 23.3% from current levels.

On the date of publication, Neha Panjwani did not hold any positions in the securities mentioned in this article. All information and data in this article are for informational purposes only. For further details, please refer to the Barchart Disclosure Policy.