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Lamb Weston (LW) Readies for Q3 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 third-quarter fiscal 2023 earnings on Apr 6. The Zacks Consensus Estimate for revenues is pegged at $1.18 billion, suggesting an increase of 23.3% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for the fiscal third-quarter bottom line has moved up by a penny in the past 30 days to 98 cents per share. The projection indicates growth of 34.3% from the year-ago quarter’s reported figure.
We expect third-quarter revenues to increase 22.2% year over year to $1,166.6 million and adjusted earnings per share (EPS) to rise 18.1% to 89 cents.
Lamb Weston has a trailing four-quarter earnings surprise of 52.6%, on average. This frozen potato product company delivered an earnings surprise of almost 73% in the last reported quarter.
Lamb Weston’s efforts to boost capacity to meet rising demand conditions for snacks and fries bodes well. The company is benefiting from robust pricing action across core business units to counter input, manufacturing and transportation cost inflation. Also, management is on track with enhancing the business and product mix to counter input cost inflation. The continuation of such aspects bodes well for the quarter under review.
That said, Lamb Weston continues to grapple with cost inflation of key production inputs, labor and transportation. In its last earnings call, management highlighted that it expects sales volume to be under pressure in the back half of fiscal 2023 due to the adverse impact of ongoing supply chain disruptions on run rates and throughput across its manufacturing units.
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 carries a Zacks Rank #3 and has an Earnings ESP of 0.00%.
Stocks With the Favorable Combination
Here are three companies worth considering, as our model shows that these have the right combination of elements to beat earnings this time.
Simply Good Foods (SMPL - Free Report) currently has an Earnings ESP of +5.26% and a Zacks Rank #2. The company is expected to register a top-and-bottom-line decline when it reports second-quarter fiscal 2023 results. The consensus mark for Simply Good Foods’ revenues is pegged at $290.7 million, indicating a drop of 2% from the figure reported in the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for the quarterly EPS of 30 cents suggests a dip of 16.7% from the year-ago quarter. SMPL has a trailing four-quarter earnings surprise of 20.2%, on average.
Constellation Brands (STZ - Free Report) currently has an Earnings ESP of +2.36% and a Zacks Rank of 2. The company is likely to register a decrease in the top line when it reports fourth-quarter fiscal 2023 results. The Zacks Consensus Estimate for Constellation Brands’ quarterly revenues is pegged at roughly $2 billion, which suggests a drop of 3.4% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for STZ’s quarterly EPS of $1.86 suggests a 21.5% decrease from the year-ago quarter. Constellation Brands has a trailing four-quarter earnings surprise of 6.1%, on average.
Purple Innovation (PRPL - Free Report) currently has an Earnings ESP of +10.26% and a Zacks Rank of 3. The company is likely to register a top-line decrease when it reports first-quarter 2023 results. The consensus mark for PRPL’s quarterly revenues is pegged at around $105 million, which suggests a decline of 26.9% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Purple Innovation’s bottom line has deteriorated by a penny to a loss of 6 cents per share in the past 30 days. The consensus estimate indicates an improvement from the year-ago quarter’s figure of a loss of 24 cents.
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Lamb Weston (LW) Readies for Q3 Earnings: Things to Note
Lamb Weston Holdings, Inc. (LW - Free Report) is likely to register top and bottom-line growth when it reports third-quarter fiscal 2023 earnings on Apr 6. The Zacks Consensus Estimate for revenues is pegged at $1.18 billion, suggesting an increase of 23.3% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for the fiscal third-quarter bottom line has moved up by a penny in the past 30 days to 98 cents per share. The projection indicates growth of 34.3% from the year-ago quarter’s reported figure.
We expect third-quarter revenues to increase 22.2% year over year to $1,166.6 million and adjusted earnings per share (EPS) to rise 18.1% to 89 cents.
Lamb Weston has a trailing four-quarter earnings surprise of 52.6%, on average. This frozen potato product company delivered an earnings surprise of almost 73% in the last reported quarter.
Lamb Weston Price and EPS Surprise
Lamb Weston price-eps-surprise | Lamb Weston Quote
Things To Note
Lamb Weston’s efforts to boost capacity to meet rising demand conditions for snacks and fries bodes well. The company is benefiting from robust pricing action across core business units to counter input, manufacturing and transportation cost inflation. Also, management is on track with enhancing the business and product mix to counter input cost inflation. The continuation of such aspects bodes well for the quarter under review.
That said, Lamb Weston continues to grapple with cost inflation of key production inputs, labor and transportation. In its last earnings call, management highlighted that it expects sales volume to be under pressure in the back half of fiscal 2023 due to the adverse impact of ongoing supply chain disruptions on run rates and throughput across its manufacturing units.
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 carries a Zacks Rank #3 and has an Earnings ESP of 0.00%.
Stocks With the Favorable Combination
Here are three companies worth considering, as our model shows that these have the right combination of elements to beat earnings this time.
Simply Good Foods (SMPL - Free Report) currently has an Earnings ESP of +5.26% and a Zacks Rank #2. The company is expected to register a top-and-bottom-line decline when it reports second-quarter fiscal 2023 results. The consensus mark for Simply Good Foods’ revenues is pegged at $290.7 million, indicating a drop of 2% from the figure reported in the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for the quarterly EPS of 30 cents suggests a dip of 16.7% from the year-ago quarter. SMPL has a trailing four-quarter earnings surprise of 20.2%, on average.
Constellation Brands (STZ - Free Report) currently has an Earnings ESP of +2.36% and a Zacks Rank of 2. The company is likely to register a decrease in the top line when it reports fourth-quarter fiscal 2023 results. The Zacks Consensus Estimate for Constellation Brands’ quarterly revenues is pegged at roughly $2 billion, which suggests a drop of 3.4% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for STZ’s quarterly EPS of $1.86 suggests a 21.5% decrease from the year-ago quarter. Constellation Brands has a trailing four-quarter earnings surprise of 6.1%, on average.
Purple Innovation (PRPL - Free Report) currently has an Earnings ESP of +10.26% and a Zacks Rank of 3. The company is likely to register a top-line decrease when it reports first-quarter 2023 results. The consensus mark for PRPL’s quarterly revenues is pegged at around $105 million, which suggests a decline of 26.9% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Purple Innovation’s bottom line has deteriorated by a penny to a loss of 6 cents per share in the past 30 days. The consensus estimate indicates an improvement from the year-ago quarter’s figure of a loss of 24 cents.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.