Stock Story -
Potato products company Lamb Weston (NYSE:LW) will be reporting earnings tomorrow before the bell. Here's what to look for.
Lamb Weston missed analysts' revenue expectations by 11.8% last quarter, reporting revenues of $1.46 billion, up 16.3% year on year. It was a weak quarter for the company, with full-year revenue guidance missing analysts' expectations and a miss of analysts' gross margin estimates.
Is Lamb Weston a buy or sell going into earnings? Find out by reading the original article on StockStory, it's free.
This quarter, analysts are expecting Lamb Weston's revenue to be flat year on year at $1.71 billion, slowing from the 47% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.25 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Lamb Weston has missed Wall Street's revenue estimates twice over the last two years.
Looking at Lamb Weston's peers in the shelf-stable food segment, some have already reported their Q2 results, giving us a hint as to what we can expect. McCormick (NYSE:MKC) posted flat year-on-year revenue, meeting analysts' expectations, and Simply Good Foods reported revenues up 3.1%, in line with consensus estimates. McCormick traded up 4.8% following the results while Simply Good Foods's stock price was unchanged.
Read the full analysis of McCormick's and Simply Good Foods's results on StockStory.
Investors in the shelf-stable food segment have had steady hands going into earnings, with share prices flat over the last month. Lamb Weston is down 6.6% during the same time and is heading into earnings with an average analyst price target of $106.9 (compared to the current share price of $79.35).
