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What's in the Offing for Lamb Weston's (LW) in Q1 Earnings?

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Lamb Weston Holdings, Inc. (LW - Free Report) is likely to register top-and bottom-line growth when it reports first-quarter fiscal 2022 earnings on Oct 5. The Zacks Consensus Estimate for quarterly revenues is pegged at $1,141 million, suggesting a rise of nearly 16% from the prior-year quarter’s reported figure.

The Zacks Consensus Estimate for quarterly earnings has remained unchanged at 52 cents per share in the past 30 days, suggesting an increase from 20 cents reported in the year-ago quarter. The frozen potato products company has a trailing four-quarter earnings surprise of 24.4%, on average. LW delivered an earnings surprise of 27.5% in the last reported quarter.

Things To Consider

Lamb Weston has been benefiting from the recovery in the Foodservice business. The continued rebound in demand from full-service restaurants and non-commercial channels like lodging and hospitality, healthcare, schools and universities, sports and entertainment and workplace environments has been aiding volumes. Lamb Weston is gaining on its robust price/mix amid a rising inflationary environment. The company’s constant efforts to boost offerings and expand capacity bode well amid rising demand for snacks and fries. We believe that the persistence of these aspects bodes well for the quarter to be reported.

Lamb Weston Price and EPS Surprise

 

Lamb Weston Price and EPS Surprise

Lamb Weston price-eps-surprise | Lamb Weston Quote

In its last earnings call, management highlighted that inflation is likely to remain a major threat to the company’s costs and demand for fries. Management expects the gross margin to remain under pressure in the first half of fiscal 2023 due to considerable inflation for key production inputs, transportation and packaging and rising raw potato costs on a per-pound basis. Also, the adverse impacts of supply-chain hurdles, resulting in operational bottlenecks like labor and commodities shortage threaten the company’s margin. The persistence of these factors might be a concern for Lamb Weston’s performance in the fiscal first quarter.

 

What the Zacks Model Unveils

Our proven model doesn’t conclusively 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Lamb Weston has an Earnings ESP of 0.00% and carries a Zacks Rank #2.

Stocks With Favorable Combination

Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:

Kellogg Company (K - Free Report) currently has an Earnings ESP of +1.04% and a Zacks Rank #3. K is expected to register top-line growth when it reports third-quarter 2022 numbers. The Zacks Consensus Estimate for Kellogg's quarterly revenues is pegged at $3.8 billion, which suggests growth of around 4% from the prior-year quarter’s reported figure. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Kellogg's quarterly earnings has dropped by a penny in the past 30 days to 96 cents per share, suggesting a decline of 11.9% from the year-ago quarter’s tally. K delivered an earnings beat of 13.3%, on average, in the trailing four quarters.

Sysco Corporation (SYY - Free Report) currently has an Earnings ESP of +0.36% and a Zacks Rank #3. The company is likely to register top-and bottom-line improvement when it reports first-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for the quarterly EPS of 99 cents suggests a 19.3% improvement from the figure reported in the year-ago quarter.

The Zacks Consensus Estimate for Sysco’s quarterly revenues is pegged at $18.6 billion, which indicates an improvement of 13.1% from the figure reported in the prior-year quarter. SYY has a trailing four-quarter earnings surprise of 3.6%, on average.

Beyond Meat (BYND - Free Report) currently has an Earnings ESP of +9.23% and a Zacks Rank of 3. The company is likely to register a rise in the top line when it reports third-quarter 2022 results. The Zacks Consensus Estimate for BYND’s quarterly revenues is pegged at $113.3 million, which suggests a jump of 6.4% from the figure reported in the prior-year quarter.

The consensus mark for Beyond Meat’s bottom line improved by a penny in the past 30 days to a loss of $1.10 per share, compared with a loss of 87 cents reported in the year-ago quarter.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


In-Depth Zacks Research for the Tickers Above


One ticker, your choice, absolutely free ($25 value):


Kellogg Company (K) - free report >>

Sysco Corporation (SYY) - free report >>

Lamb Weston (LW) - free report >>

Beyond Meat, Inc. (BYND) - free report >>

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