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Lamb Weston (LW) International Revenue Performance Explored

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Have you looked into how Lamb Weston (LW - Free Report) performed internationally during the quarter ending February 2025? Considering the widespread global presence of this frozen foods supplier, examining the trends in international revenues is essential for assessing its financial resilience and prospects for growth.

In the current era of a tightly interconnected global economy, the proficiency of a company to penetrate international markets significantly influences its financial health and trajectory of growth. For investors, the key is to grasp how reliant a company is on overseas markets, as this provides insights into the durability of its earnings, its ability to exploit different economic cycles, and its overall growth capabilities.

Presence in international markets can act as a hedge against domestic economic downturns and provide access to faster-growing economies. However, this diversification also brings complexities due to currency fluctuations, geopolitical risks and differing market dynamics.

While analyzing LW's performance for the last quarter, we found some intriguing trends in revenues from its overseas segments that Wall Street analysts commonly model and monitor.

The company's total revenue for the quarter amounted to $1.52 billion, marking an increase of 4.3% from the year-ago quarter. We will next turn our attention to dissecting LW's international revenue to get a clearer picture of how significant its operations are outside its main base.

Unveiling Trends in LW's International Revenues

Of the total revenue, $534.2 million came from International during the last fiscal quarter, accounting for 35.13%. This represented a surprise of +0.23% as analysts had expected the region to contribute $532.98 million to the total revenue. In comparison, the region contributed $528.8 million, or 33.03%, and $510.8 million, or 35.03%, to total revenue in the previous and year-ago quarters, respectively.

During the quarter, North America contributed $986.3 million in revenue, making up 64.87% of the total revenue. When compared to the consensus estimate of $979.74 million, this meant a surprise of +0.67%. Looking back, North America contributed $1.07 billion, or 66.97%, in the previous quarter, and $947.5 million, or 64.97%, in the same quarter of the previous year.

Revenue Forecasts for the International Markets

Wall Street analysts expect Lamb Weston to report a total revenue of $1.59 billion in the current fiscal quarter, which suggests a decline of 1.1% from the prior-year quarter. Revenue shares from International and North America are predicted to be 32.5% and 67.9%, corresponding to amounts of $519.49 million and $1.09 billion, respectively.

For the full year, a total revenue of $6.37 billion is expected for the company, reflecting a decline of 1.5% from the year before. The revenues from International and North America are expected to make up 33.5% and 66.6% of this total, corresponding to $2.14 billion and $4.25 billion respectively.

In Conclusion

Relying on international markets for revenues, Lamb Weston faces both prospects and perils. Thus, tracking the company's international revenue trends is essential for accurately projecting its future trajectory.

In a world where international interdependencies and geopolitical conflicts are ever-increasing, Wall Street analysts closely monitor these trends for companies having international presence to adjust their earnings forecasts. Of course, there are several other factors, including a company's standing within its home borders, that influence analysts' earnings forecasts.

At Zacks, a company's changing earnings outlook is given considerable attention due to its proven, strong influence on a stock's price performance in the near term. The connection here is straightforward and positive: when earnings estimates are revised upward, the stock price generally follows suit, increasing as well.

With an impressive externally audited track record, our proprietary stock rating tool - the Zacks Rank - harnesses the power of earnings estimate revisions and serves as an effective indicator of a stock's near-term price performance.

Currently, Lamb Weston holds a Zacks Rank #3 (Hold), signifying its potential to match the overall market's performance in the forthcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Examining the Latest Trends in Lamb Weston's Stock Value

Over the preceding four weeks, the stock's value has diminished by 8.5%, against an upturn of 9.1% in the Zacks S&P 500 composite. In parallel, the Zacks Consumer Staples sector, which counts Lamb Weston among its entities, has depreciated by 0.4%. Over the past three months, the company's shares have seen a decline of 12.4% versus the S&P 500's 3.1% decline. The sector overall has witnessed an increase of 2.9% over the same period.

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