We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Lamb Weston (LW) to Post Q1 Earnings: What's in the Offing?
Read MoreHide Full Article
Lamb Weston Holdings, Inc. (LW - Free Report) is likely to post a decline in the top and the bottom line when it reports first-quarter fiscal 2021 results on Oct 7. The Zacks Consensus Estimate for first-quarter earnings dropped by a couple of cents in the past 30 days to 30 cents per share. This suggests a slump of 62% from the figure reported in the year-ago quarter. We note that this frozen potato products provider has a trailing four-quarter negative earnings surprise of 28.5%, on average. In the last reported quarter, the company delivereda significantly high negative earnings surprise.
The consensus estimate for quarterly revenues is pegged at $877.6 million, which suggests a decline of 11.3% from the prior-year quarter’s tally.
Growing spread of coronavirus and the resultant social distancing have led to lower traffic at restaurants and quick-serve restaurants or QSRs, leading to slower orders for Lamb Weston. Moreover, inventory destocking by chain restaurant and foodservice customers has been a deterrent. These are likely to get reflected in the company’s results in the first quarter of fiscal 2021.
Apart from these, the company is witnessing higher manufacturing costs stemming from input cost inflation and inefficiencies. Also, increased costs associated with COVID-19 like expenses related to maintaining enhanced worker safety and sanitization among others pose a threat.
Nevertheless, Lamb Weston is seeing better trends in the Retail segment, given increased demand for frozen potato products stemming from increased at-home consumption. Also, the company’s actions to enhance price/mix have been aiding.
What the Zacks Model Unveils
Our proven model does not predict an earnings beat for Lamb Weston this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Lamb Weston carries a Zacks Rank #4 (Sell) and an Earnings ESP of -0.83%.
Stocks With Favorable Combination
Here are some companies that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat.
Sanderson Farms has an Earnings ESP of +427.92% and a Zacks Rank #3.
Philip Morris (PM - Free Report) currently has an Earnings ESP of +2.41% and a Zacks Rank of 3.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Image: Bigstock
Lamb Weston (LW) to Post Q1 Earnings: What's in the Offing?
Lamb Weston Holdings, Inc. (LW - Free Report) is likely to post a decline in the top and the bottom line when it reports first-quarter fiscal 2021 results on Oct 7. The Zacks Consensus Estimate for first-quarter earnings dropped by a couple of cents in the past 30 days to 30 cents per share. This suggests a slump of 62% from the figure reported in the year-ago quarter. We note that this frozen potato products provider has a trailing four-quarter negative earnings surprise of 28.5%, on average. In the last reported quarter, the company delivereda significantly high negative earnings surprise.
The consensus estimate for quarterly revenues is pegged at $877.6 million, which suggests a decline of 11.3% from the prior-year quarter’s tally.
Lamb Weston Holdings Inc. Price and EPS Surprise
Lamb Weston Holdings Inc. price-eps-surprise | Lamb Weston Holdings Inc. Quote
Factors to Note
Growing spread of coronavirus and the resultant social distancing have led to lower traffic at restaurants and quick-serve restaurants or QSRs, leading to slower orders for Lamb Weston. Moreover, inventory destocking by chain restaurant and foodservice customers has been a deterrent. These are likely to get reflected in the company’s results in the first quarter of fiscal 2021.
Apart from these, the company is witnessing higher manufacturing costs stemming from input cost inflation and inefficiencies. Also, increased costs associated with COVID-19 like expenses related to maintaining enhanced worker safety and sanitization among others pose a threat.
Nevertheless, Lamb Weston is seeing better trends in the Retail segment, given increased demand for frozen potato products stemming from increased at-home consumption. Also, the company’s actions to enhance price/mix have been aiding.
What the Zacks Model Unveils
Our proven model does not predict an earnings beat for Lamb Weston this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Lamb Weston carries a Zacks Rank #4 (Sell) and an Earnings ESP of -0.83%.
Stocks With Favorable Combination
Here are some companies that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat.
Kimberly-Clark (KMB - Free Report) currently has an Earnings ESP of +2.65% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Sanderson Farms has an Earnings ESP of +427.92% and a Zacks Rank #3.
Philip Morris (PM - Free Report) currently has an Earnings ESP of +2.41% and a Zacks Rank of 3.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>