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published in Blogs
Apr 10, 2022

Lamb Weston (LW, $66.32) beats Q4 earnings expectations; but misses revenue estimates

Lamb Weston Holdings, Inc. reported its fiscal third-quarter results, with earnings topping Zacks Consensus Estimate, even as revenue fell short of expectations.

The food processing company’s earnings climbed +62% from the year-ago quarter to 73 cents per share came, well above the Zacks Consensus Estimate of 44 cents. The bottom line was bolstered by higher income from operations and equity method investment earnings.

Net sales rose +7% year-over-year to $955 million, missing the Zacks Consensus Estimate of $962.4 million. Price/mix increased 12%, on gains from pricing strategies adopted by  the company’s business segments to offset input, manufacturing and transportation cost inflation. Volume dropped -5% due to reduced export volume and shipments to retail channels.

Revenue in the Global segment rose +2% to $487.9 million. Foodservice sales climbed +34% to $294.5 million.  In the Retail segment, sales fell -12% to $143.6 million.

Looking ahead, for fiscal full-year 2022, the company projects net sales growth to exceed its long-term goal of low-to-mid single digits. The company is expecting fourth-quarter fiscal 2022 net sales growth to be mainly boosted by price/mix, thanks to its pricing strategy to offset input and transportation cost inflation.

Related Ticker: LW

LW's MACD Histogram just turned positive

The Moving Average Convergence Divergence (MACD) for LW turned positive on May 14, 2025. Looking at past instances where LW's MACD turned positive, the stock continued to rise in of 52 cases over the following month. The odds of a continued upward trend are .

Price Prediction Chart

Technical Analysis (Indicators)

Bullish Trend Analysis

The Momentum Indicator moved above the 0 level on May 15, 2025. You may want to consider a long position or call options on LW as a result. In of 80 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .

LW moved above its 50-day moving average on May 16, 2025 date and that indicates a change from a downward trend to an upward trend.

Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where LW advanced for three days, in of 321 cases, the price rose further within the following month. The odds of a continued upward trend are .

The Aroon Indicator entered an Uptrend today. In of 285 cases where LW Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .

Bearish Trend Analysis

The Stochastic Oscillator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.

The 10-day moving average for LW crossed bearishly below the 50-day moving average on April 24, 2025. This indicates that the trend has shifted lower and could be considered a sell signal. In of 13 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .

Following a 3-day decline, the stock is projected to fall further. Considering past instances where LW declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .

LW broke above its upper Bollinger Band on May 16, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.

The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.

The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (9.091) is normal, around the industry mean (6.577). P/E Ratio (13.616) is within average values for comparable stocks, (27.155). Projected Growth (PEG Ratio) (3.402) is also within normal values, averaging (2.471). Dividend Yield (0.011) settles around the average of (0.043) among similar stocks. P/S Ratio (2.414) is also within normal values, averaging (68.169).

The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.

The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. LW’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.

The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.

The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. LW’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 78, placing this stock worse than average.

Notable companies

The most notable companies in this group are Mondelez International (NASDAQ:MDLZ), Kraft Heinz Company (The) (NASDAQ:KHC), General Mills (NYSE:GIS), The Campbell's Company (NASDAQ:CPB), Beyond Meat (NASDAQ:BYND).

Industry description

A specialty/candy manufacturer specializes in one or more of the following: chocolate, candies, pasta, condiments, seasonings, among other items. Hershey Company, McCormick & Company and J.M. Smucker Company are some of the major firms in this segment. Demand for this industry’s products comes from both institutions/restaurants as well as households.

Market Cap

The average market capitalization across the Food: Specialty/Candy Industry is 9.37B. The market cap for tickers in the group ranges from 6.25K to 327.81B. NSRGY holds the highest valuation in this group at 327.81B. The lowest valued company is OGGFF at 6.25K.

High and low price notable news

The average weekly price growth across all stocks in the Food: Specialty/Candy Industry was 1%. For the same Industry, the average monthly price growth was 1%, and the average quarterly price growth was -3%. AMNC experienced the highest price growth at 51%, while TOFB experienced the biggest fall at -15%.

Volume

The average weekly volume growth across all stocks in the Food: Specialty/Candy Industry was -19%. For the same stocks of the Industry, the average monthly volume growth was 18% and the average quarterly volume growth was 18%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 51
P/E Growth Rating: 59
Price Growth Rating: 58
SMR Rating: 70
Profit Risk Rating: 78
Seasonality Score: 2 (-100 ... +100)
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published General Information

General Information

a producer of frozen potato products

Industry FoodSpecialtyCandy

Profile
Fundamentals
Details
Industry
Food Specialty Or Candy
Address
599 S. Rivershore Lane
Phone
+1 208 938-1047
Employees
10300
Web
https://www.lambweston.com