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Investing in Lamb Weston (LW)? Don't Miss Assessing Its International Revenue Trends

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Did you analyze how Lamb Weston (LW - Free Report) fared in its international operations for the quarter ending May 2025? Given the widespread global presence of this frozen foods supplier, scrutinizing the trends in international revenues becomes imperative to assess its financial strength and future growth possibilities.

The global economy today is deeply interlinked, making a company's engagement with international markets a critical factor in determining its financial success and growth path. It has become essential for investors to comprehend how much a company relies on these foreign markets, as this understanding reveals the firm's potential for consistent earnings, its capacity to harness different economic cycles, and its overall growth prospects.

International market involvement serves as insurance against economic downturns at home and enables engagement with economies that are growing more quickly. Still, this move toward diversification is not without its challenges, as it involves navigating through the fluctuations of currencies, geopolitical threats, and the distinctive nature of various markets.

Our review of LW's last quarterly performance uncovered some notable trends in the revenue contributions from its international markets, which are commonly analyzed and tracked by Wall Street experts.

The recent quarter saw the company's total revenue reaching $1.68 billion, marking an improvement of 4% from the prior-year quarter. Next, we'll examine the breakdown of LW's revenue from abroad to comprehend the significance of its international presence.

Unveiling Trends in LW's International Revenues

Of the total revenue, $1.1 billion came from North America during the last fiscal quarter, accounting for 65.83%. This represented a surprise of +2.4% as analysts had expected the region to contribute $1.08 billion to the total revenue. In comparison, the region contributed $986.3 million, or 64.87%, and $1.11 billion, or 69.06%, to total revenue in the previous and year-ago quarters, respectively.

During the quarter, International contributed $572.7 million in revenue, making up 34.17% of the total revenue. When compared to the consensus estimate of $519.32 million, this meant a surprise of +10.28%. Looking back, International contributed $534.2 million, or 35.13%, in the previous quarter, and $498.7 million, or 30.94%, in the same quarter of the previous year.

Projected Revenues in Foreign Markets

Wall Street analysts expect Lamb Weston to report a total revenue of $1.62 billion in the current fiscal quarter, which suggests a decline of 2.3% from the prior-year quarter. Revenue shares from North America and International are predicted to be 66.8% and 34%, corresponding to amounts of $1.08 billion and $549.06 million, respectively.

For the entire year, the company's total revenue is forecasted to be $6.49 billion, which is an improvement of 0.5% from the previous year. The revenue contributions from different regions are expected as follows: North America will contribute 65.4% ($4.24 billion) and International 33.5% ($2.17 billion) to the total revenue.

Closing Remarks

Relying on global markets for revenues presents both prospects and challenges for Lamb Weston. Therefore, scrutinizing its international revenue trends is key to effectively forecasting the company's future outlook.

In an era of growing international ties and escalating geopolitical disputes, financial analysts on Wall Street pay keen attention to these developments to fine-tune their earnings estimations for businesses operating across borders. It's important to note, however, that a range of additional variables, like a company's local market status, also play a crucial role in shaping these forecasts.

At Zacks, we place significant importance on a company's evolving earnings outlook. This is based on empirical evidence demonstrating its strong influence on a stock's short -term price movements. Invariably, there exists a positive relationship -- an upward revision in earnings estimates is typically mirrored by a rise in the stock price.

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 >>>>

Assessing Lamb Weston's Stock Price Movement in Recent Times

The stock has increased by 14% over the past month compared to the 4.9% rise of the Zacks S&P 500 composite. Meanwhile, the Zacks Consumer Staples sector, which includes Lamb Weston, has increased 1.1% during this time frame. Over the past three months, the company's shares have experienced a gain of 18.2% relative to the S&P 500's 16% increase. Throughout this period, the sector overall has witnessed a 0.2% increase.

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