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Lamb Weston (LW) Gears Up for Q2 Earnings: Things to Note
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Lamb Weston Holdings, Inc. (LW - Free Report) is likely to register top and bottom-line growth when it reports second-quarter fiscal 2023 earnings on Jan 5. The Zacks Consensus Estimate for revenues is pegged at $1,159 million, suggesting an increase of 15.2% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for the fiscal second-quarter bottom line has remained unchanged in the past 30 days at 74 cents per share. The projection indicates growth of 48% from the year-ago quarter’s reported figure.
Lamb Weston has a trailing four-quarter earnings surprise of 47.3%, on average. This frozen potato product company delivered an earnings surprise of 44.2% in the last reported quarter.
Lamb Weston has been benefiting from its robust pricing actions across core business segments to counter input, manufacturing and transportation cost inflation. Management expects the gross margin to have remained 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.
The gross margin is also likely to have borne the adverse impacts of supply-chain hurdles, resulting in operational bottlenecks like labor and commodities shortages.
However, management highlighted that it expects to keep realizing the carryover benefit of product pricing actions in the Foodservice and Retail segments in fiscal 2023. In the Global segment, it expects to witness the benefit of pricing actions, which includes pricing structures for contract renewals.
The abovementioned aspects bode well for the quarter under review. Further, Lamb Weston’s efforts to boost offerings and expand capacity enable the company to effectively meet rising demand conditions for snacks and fries.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Lamb Weston this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is not the case here.
Lamb Weston has a Zacks Rank #3 and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are three companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
The Zacks Consensus Estimate for Mondelez’s quarterly revenues is pegged at $8.3 billion, calling for growth of 8.7% from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for the quarterly EPS of 71 cents is in line with the figure reported in the year-ago fiscal quarter. MDLZ has a trailing four-quarter earnings surprise of 6.4%, on average.
The Kraft Heinz Company (KHC - Free Report) currently has an Earnings ESP of +2.11% and a Zacks Rank of 3. KHC is likely to register a bottom-line decline when it reports fourth-quarter 2022 earnings. The Zacks Consensus Estimate for the quarterly EPS of 78 cents suggests a decrease of 1.3% from the year-ago quarter.
Kraft Heinz’s top line is likely to grow year over year in the fourth quarter. The Zacks Consensus Estimate for quarterly revenues is pegged at $7.2 billion, indicating a rise of 6.6% from the figure reported in the prior-year quarter. KHC delivered an earnings beat of 15.5%, on average, in the trailing four quarters.
Kellogg Company (K - Free Report) currently has an Earnings ESP of +4.72% and a Zacks Rank of 3. K is expected to register a top and bottom-line improvement when it reports fourth-quarter 2022 numbers.
The Zacks Consensus Estimate for Kellogg's quarterly revenues is pegged at $3.6 billion, calling for growth of 6.2% from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for the quarterly EPS of 84 cents suggests a 1.2% increase from the figure reported in the year-ago fiscal quarter. K has a trailing four-quarter earnings surprise of 10.6%, on average.
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Lamb Weston (LW) Gears Up for Q2 Earnings: Things to Note
Lamb Weston Holdings, Inc. (LW - Free Report) is likely to register top and bottom-line growth when it reports second-quarter fiscal 2023 earnings on Jan 5. The Zacks Consensus Estimate for revenues is pegged at $1,159 million, suggesting an increase of 15.2% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for the fiscal second-quarter bottom line has remained unchanged in the past 30 days at 74 cents per share. The projection indicates growth of 48% from the year-ago quarter’s reported figure.
Lamb Weston has a trailing four-quarter earnings surprise of 47.3%, on average. This frozen potato product company delivered an earnings surprise of 44.2% in the last reported quarter.
Lamb Weston Price, Consensus and EPS Surprise
Lamb Weston price-consensus-eps-surprise-chart | Lamb Weston Quote
Factors to Consider
Lamb Weston has been benefiting from its robust pricing actions across core business segments to counter input, manufacturing and transportation cost inflation. Management expects the gross margin to have remained 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.
The gross margin is also likely to have borne the adverse impacts of supply-chain hurdles, resulting in operational bottlenecks like labor and commodities shortages.
However, management highlighted that it expects to keep realizing the carryover benefit of product pricing actions in the Foodservice and Retail segments in fiscal 2023. In the Global segment, it expects to witness the benefit of pricing actions, which includes pricing structures for contract renewals.
The abovementioned aspects bode well for the quarter under review. Further, Lamb Weston’s efforts to boost offerings and expand capacity enable the company to effectively meet rising demand conditions for snacks and fries.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Lamb Weston this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is not the case here.
Lamb Weston has a Zacks Rank #3 and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are three companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Mondelez International (MDLZ - Free Report) currently has an Earnings ESP of +6.67% and a Zacks Rank of 2. MDLZ is expected to register a top-line improvement when it reports fourth-quarter 2022 numbers. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Mondelez’s quarterly revenues is pegged at $8.3 billion, calling for growth of 8.7% from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for the quarterly EPS of 71 cents is in line with the figure reported in the year-ago fiscal quarter. MDLZ has a trailing four-quarter earnings surprise of 6.4%, on average.
The Kraft Heinz Company (KHC - Free Report) currently has an Earnings ESP of +2.11% and a Zacks Rank of 3. KHC is likely to register a bottom-line decline when it reports fourth-quarter 2022 earnings. The Zacks Consensus Estimate for the quarterly EPS of 78 cents suggests a decrease of 1.3% from the year-ago quarter.
Kraft Heinz’s top line is likely to grow year over year in the fourth quarter. The Zacks Consensus Estimate for quarterly revenues is pegged at $7.2 billion, indicating a rise of 6.6% from the figure reported in the prior-year quarter. KHC delivered an earnings beat of 15.5%, on average, in the trailing four quarters.
Kellogg Company (K - Free Report) currently has an Earnings ESP of +4.72% and a Zacks Rank of 3. K is expected to register a top and bottom-line improvement when it reports fourth-quarter 2022 numbers.
The Zacks Consensus Estimate for Kellogg's quarterly revenues is pegged at $3.6 billion, calling for growth of 6.2% from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for the quarterly EPS of 84 cents suggests a 1.2% increase from the figure reported in the year-ago fiscal quarter. K has a trailing four-quarter earnings surprise of 10.6%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.