We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
What's Cooking for Lamb Weston Stock Ahead of Q1 Earnings Release?
Read MoreHide Full Article
Key Takeaways
Lamb Weston is expected to report Q1 revenues of $1.61 billion, down 2.5% year over year.
The consensus estimate for earnings stands at 54 cents per share, a 26% drop from last year.
Pricing pressures, soft traffic and higher costs may impact margins despite savings efforts.
Lamb Weston Holdings, Inc. (LW - Free Report) is likely to witness a top and bottom-line decline when it reports first-quarter fiscal 2026 earnings on Sept. 30. The Zacks Consensus Estimate for revenues is pegged at $1.61 billion, indicating a 2.5% drop from the prior-year quarter’s reported figure.
The consensus mark for earnings has remained unchanged in the past 30 days at 54 cents per share, which suggests a 26% decrease from the figure reported in the year-ago quarter. LW has a trailing four-quarter earnings surprise of 6.8%, on average.
One of the key headwinds likely to have affected the first-quarter performance is the competitive pricing environment across North America and international markets. On its fourth-quarter fiscal 2025 earnings release, management signaled that pricing investments would continue into fiscal 2026, with low-to-mid single-digit declines expected in the first half of the year. These trade and price concessions may support volumes but are likely to put pressure on gross margins.
Soft traffic in the United States and the UK is also a concern, as despite momentum in customer wins, weak traffic trends can lower sales growth and limit pricing power.
Apart from this, cost inflation (though moderating in potatoes) continues to be an issue across other inputs, including labor, packaging, and ingredients such as oils and starches. Higher transportation and warehousing expenses, which increased in fiscal 2025 due to elevated inventories, could remain a drag if not fully offset by efficiency measures.
Lamb Weston’s restructuring and cost-saving efforts, including its “Focus to Win” plan, offer a pathway to stronger financial performance. Another supportive factor is Lamb Weston’s ability to leverage innovation and product quality to maintain customer loyalty.
Earnings Whispers for LW Stock
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 odds of an earnings beat, which is not the case here.
Lamb Weston carries a Zacks Rank #3 and has an Earnings ESP of -8.36%. 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 some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
The Chef's Warehouse (CHEF - Free Report) currently has an Earnings ESP of +7.32% and a Zacks Rank of 1. The company is likely to register a jump in the top and bottom lines when it reports third-quarter 2025 numbers. The Zacks Consensus Estimate for The Chef's Warehouse’s quarterly revenues is pegged at $981.3 million, which suggests an increase of 5.4% from the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for the quarterly earnings per share stands at 41 cents, up 13.9% from the year-ago period. CHEF has a trailing four-quarter earnings surprise of 11.3%, on average.
Kraft Heinz Company (KHC - Free Report) currently has an Earnings ESP of +0.44% and a Zacks Rank of 3. The company is likely to register a top and bottom-line decline when it reports third-quarter 2025 numbers. The Zacks Consensus Estimate for Kraft Heinz’s quarterly revenues is pegged at $6.27 billion, which calls for a decrease of 1.7% from the prior-year quarter.
The Zacks Consensus Estimate for Kraft Heinz’s quarterly earnings per share is pegged at 58 cents, indicating a 22.7% plunge from the year-ago period. KHC has a trailing four-quarter earnings surprise of 5.1%, on average.
Kimberly-Clark Corporation (KMB - Free Report) currently has an Earnings ESP of +17.43% and a Zacks Rank of 3. The company is likely to register top and bottom-line declines when it reports third-quarter 2025 numbers. The Zacks Consensus Estimate for Kimberly-Clark’s quarterly revenues is pegged at $4.17 billion, which suggests a 15.9% decrease from the prior-year quarter.
The Zacks Consensus Estimate for Kimberly-Clark’s quarterly earnings per share is pegged at $1.64, indicating a 10.4% fall from the year-ago period figure. KMB has a trailing four-quarter earnings surprise of 6.2%, on average.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
What's Cooking for Lamb Weston Stock Ahead of Q1 Earnings Release?
Key Takeaways
Lamb Weston Holdings, Inc. (LW - Free Report) is likely to witness a top and bottom-line decline when it reports first-quarter fiscal 2026 earnings on Sept. 30. The Zacks Consensus Estimate for revenues is pegged at $1.61 billion, indicating a 2.5% drop from the prior-year quarter’s reported figure.
The consensus mark for earnings has remained unchanged in the past 30 days at 54 cents per share, which suggests a 26% decrease from the figure reported in the year-ago quarter. LW has a trailing four-quarter earnings surprise of 6.8%, on average.
Lamb Weston Price, Consensus and EPS Surprise
Lamb Weston price-consensus-eps-surprise-chart | Lamb Weston Quote
LW: Key Factors to Watch
One of the key headwinds likely to have affected the first-quarter performance is the competitive pricing environment across North America and international markets. On its fourth-quarter fiscal 2025 earnings release, management signaled that pricing investments would continue into fiscal 2026, with low-to-mid single-digit declines expected in the first half of the year. These trade and price concessions may support volumes but are likely to put pressure on gross margins.
Soft traffic in the United States and the UK is also a concern, as despite momentum in customer wins, weak traffic trends can lower sales growth and limit pricing power.
Apart from this, cost inflation (though moderating in potatoes) continues to be an issue across other inputs, including labor, packaging, and ingredients such as oils and starches. Higher transportation and warehousing expenses, which increased in fiscal 2025 due to elevated inventories, could remain a drag if not fully offset by efficiency measures.
Lamb Weston’s restructuring and cost-saving efforts, including its “Focus to Win” plan, offer a pathway to stronger financial performance. Another supportive factor is Lamb Weston’s ability to leverage innovation and product quality to maintain customer loyalty.
Earnings Whispers for LW Stock
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 odds of an earnings beat, which is not the case here.
Lamb Weston carries a Zacks Rank #3 and has an Earnings ESP of -8.36%. 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 some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
The Chef's Warehouse (CHEF - Free Report) currently has an Earnings ESP of +7.32% and a Zacks Rank of 1. The company is likely to register a jump in the top and bottom lines when it reports third-quarter 2025 numbers. The Zacks Consensus Estimate for The Chef's Warehouse’s quarterly revenues is pegged at $981.3 million, which suggests an increase of 5.4% from the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for the quarterly earnings per share stands at 41 cents, up 13.9% from the year-ago period. CHEF has a trailing four-quarter earnings surprise of 11.3%, on average.
Kraft Heinz Company (KHC - Free Report) currently has an Earnings ESP of +0.44% and a Zacks Rank of 3. The company is likely to register a top and bottom-line decline when it reports third-quarter 2025 numbers. The Zacks Consensus Estimate for Kraft Heinz’s quarterly revenues is pegged at $6.27 billion, which calls for a decrease of 1.7% from the prior-year quarter.
The Zacks Consensus Estimate for Kraft Heinz’s quarterly earnings per share is pegged at 58 cents, indicating a 22.7% plunge from the year-ago period. KHC has a trailing four-quarter earnings surprise of 5.1%, on average.
Kimberly-Clark Corporation (KMB - Free Report) currently has an Earnings ESP of +17.43% and a Zacks Rank of 3. The company is likely to register top and bottom-line declines when it reports third-quarter 2025 numbers. The Zacks Consensus Estimate for Kimberly-Clark’s quarterly revenues is pegged at $4.17 billion, which suggests a 15.9% decrease from the prior-year quarter.
The Zacks Consensus Estimate for Kimberly-Clark’s quarterly earnings per share is pegged at $1.64, indicating a 10.4% fall from the year-ago period figure. KMB has a trailing four-quarter earnings surprise of 6.2%, on average.