Lamb Weston up after lifting annual forecasts
LW•Lamb Weston raised its annual revenue outlook to low-single-digit growth and its fiscal 2027 adjusted EPS forecast to $3.05-$3.35. First-quarter sales were $1.67 billion and adjusted EPS was 75 cents, both above estimates.
1. Raised forecasts
Lamb Weston lifted its annual forecasts, citing resilient demand, particularly in North America. It now expects annual revenue to grow by low single digits, compared with its previous forecast of flat to 1% growth, and sees fiscal 2027 adjusted EPS of $3.05 to $3.35, up from $2.95 to $3.25.
2. Quarterly results
First-quarter sales were $1.67 billion, versus estimates of $1.65 billion. Adjusted EPS was 75 cents, compared with estimates of 59 cents, helped by cost-saving efforts. North America sales, which contribute the majority of revenue, rose 5%.
3. Costs and shares
CEO Mike Smith said the company continues to face unexpected inflation in key input costs and freight, and is addressing cost inflation by working with suppliers and hedging where possible. Shares rose 4% in premarket trading to $46.39.
