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Lamb Weston Stock Rallies 13% Since Q1 Earnings: What's Next for LW?
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Key Takeaways
LW shares have gained 12.6% since the company reported strong Q1 results and raised fiscal 2027 guidance.
North America sales grew 5%, with volumes up 7% and adjusted EBITDA rising 11% on higher volumes.
LW raised its fiscal 2027 EPS outlook to $3.05-$3.35, but inflation and international weakness remain.
Lamb Weston Holdings, Inc. (LW - Free Report) shares have rallied 12.6% since the company reported first-quarter fiscal 2027 results on Oct. 6, 2026. The stock's impressive run follows a better-than-expected quarterly performance and an upward revision to the company's full-year financial outlook.
Stronger sales volumes in North America, improved operating execution and ongoing cost-saving efforts were among the key highlights of the quarter, providing important context for the recent share-price momentum.
Lamb Weston reported first-quarter net sales of $1.67 billion, up 1% year over year, supported by a 2% increase in sales volumes that was partly offset by unfavorable price/mix. Adjusted earnings per share (EPS) improved to 75 cents from 74 cents in the year-ago quarter. Adjusted EBITDA declined 5% to $286 million but exceeded the company's expectations.
LW’s Solid North America Trends and Raised Outlook in Focus
North America remained a key bright spot, with segment net sales increasing 5% and sales volumes rising 7%, marking the seventh consecutive quarter of volume growth. Segment adjusted EBITDA grew 11% to $287 million, supported by higher volumes, cost savings, tariff refunds and improved equity-method investment earnings. Price/mix declined 1.7%, an improvement from the 2.4% decrease recorded in the preceding quarter.
Following the encouraging start, Lamb Weston raised its fiscal 2027 net sales outlook to low-single-digit growth from the earlier projection of flat to 1% growth. The adjusted EBITDA forecast was increased to $1.125-$1.215 billion from $1.10-$1.20 billion, while adjusted EPS guidance was lifted to $3.05-$3.35 from $2.95-$3.25.
What's Next for Lamb Weston Stock?
Following its nearly 13% post-earnings rally, Lamb Weston's focus remains on delivering against its raised fiscal 2027 outlook. Sustained volume growth in North America, improving price/mix trends and continued cost savings are important elements of its operating performance.
For the second quarter, Lamb Weston expects low-single-digit sales growth and high-single-digit to low-double-digit adjusted EBITDA growth. However, persistent input-cost inflation and weaker international performance remain challenges. The company's ability to sustain operating improvements, strengthen profitability and navigate ongoing cost pressures will remain central to assessing the momentum behind LW's recent stock rally.
From a valuation standpoint, Lamb Weston trades at a forward price-to-earnings ratio of 15.12, above the industry’s average of 13.79.
LW Valuation Compared to Industry
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Lamb Weston’s current and next fiscal-year earnings per share implies year-over-year growth of 6.3% and 10.4%, respectively.
Other Stocks to Consider
The Chefs' Warehouse, Inc. (CHEF - Free Report) , a premier distributor of specialty food products, currently carries a Zacks Rank #2 (Buy). CHEF delivered a trailing four-quarter earnings surprise of 30.4%, on average.
The Zacks Consensus Estimate for The Chefs' Warehouse’s current fiscal-year sales and EPS implies growth of 10.8% and 33.7%, respectively, from the year-ago figures.
Mama's Creations, Inc. (MAMA - Free Report) , a prepared-foods company focused on fresh, ready-to-eat and deli products, currently carries a Zacks Rank of 2. MAMA delivered a trailing four-quarter surprise of 121.7%, on average.
The Zacks Consensus Estimate for Mama's Creations’ current fiscal-year sales and EPS indicates respective increases of 30.3% and 66.7% from the year-ago period.
Laird Superfood, Inc. (LSF - Free Report) , a consumer product company that develops, manufactures and markets plant-based, natural and functional food and beverage products, currently carries a Zacks Rank #2. LSF delivered an earnings surprise of 100% in the last reported quarter.
The Zacks Consensus Estimate for Laird Superfood’s current fiscal-year sales and EPS implies growth of 188.2% and 104%, respectively, from the year-ago figures.
View the Zacks #1 Rank List
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Lamb Weston Stock Rallies 13% Since Q1 Earnings: What's Next for LW?
Key Takeaways
Lamb Weston Holdings, Inc. (LW - Free Report) shares have rallied 12.6% since the company reported first-quarter fiscal 2027 results on Oct. 6, 2026. The stock's impressive run follows a better-than-expected quarterly performance and an upward revision to the company's full-year financial outlook.
Stronger sales volumes in North America, improved operating execution and ongoing cost-saving efforts were among the key highlights of the quarter, providing important context for the recent share-price momentum.
Lamb Weston reported first-quarter net sales of $1.67 billion, up 1% year over year, supported by a 2% increase in sales volumes that was partly offset by unfavorable price/mix. Adjusted earnings per share (EPS) improved to 75 cents from 74 cents in the year-ago quarter. Adjusted EBITDA declined 5% to $286 million but exceeded the company's expectations.
LW’s Solid North America Trends and Raised Outlook in Focus
North America remained a key bright spot, with segment net sales increasing 5% and sales volumes rising 7%, marking the seventh consecutive quarter of volume growth. Segment adjusted EBITDA grew 11% to $287 million, supported by higher volumes, cost savings, tariff refunds and improved equity-method investment earnings. Price/mix declined 1.7%, an improvement from the 2.4% decrease recorded in the preceding quarter.
Following the encouraging start, Lamb Weston raised its fiscal 2027 net sales outlook to low-single-digit growth from the earlier projection of flat to 1% growth. The adjusted EBITDA forecast was increased to $1.125-$1.215 billion from $1.10-$1.20 billion, while adjusted EPS guidance was lifted to $3.05-$3.35 from $2.95-$3.25.
What's Next for Lamb Weston Stock?
Following its nearly 13% post-earnings rally, Lamb Weston's focus remains on delivering against its raised fiscal 2027 outlook. Sustained volume growth in North America, improving price/mix trends and continued cost savings are important elements of its operating performance.
For the second quarter, Lamb Weston expects low-single-digit sales growth and high-single-digit to low-double-digit adjusted EBITDA growth. However, persistent input-cost inflation and weaker international performance remain challenges. The company's ability to sustain operating improvements, strengthen profitability and navigate ongoing cost pressures will remain central to assessing the momentum behind LW's recent stock rally.
LW Stock Price Performance, Valuation & Estimates
Shares of this Zacks Rank #1 (Strong Buy) company have gained 7.9% over the past three months against the industry’s decline of 3.4%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Image Source: Zacks Investment Research
LW Price Performance Versus Industry
From a valuation standpoint, Lamb Weston trades at a forward price-to-earnings ratio of 15.12, above the industry’s average of 13.79.
LW Valuation Compared to Industry
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Lamb Weston’s current and next fiscal-year earnings per share implies year-over-year growth of 6.3% and 10.4%, respectively.
Other Stocks to Consider
The Chefs' Warehouse, Inc. (CHEF - Free Report) , a premier distributor of specialty food products, currently carries a Zacks Rank #2 (Buy). CHEF delivered a trailing four-quarter earnings surprise of 30.4%, on average.
The Zacks Consensus Estimate for The Chefs' Warehouse’s current fiscal-year sales and EPS implies growth of 10.8% and 33.7%, respectively, from the year-ago figures.
Mama's Creations, Inc. (MAMA - Free Report) , a prepared-foods company focused on fresh, ready-to-eat and deli products, currently carries a Zacks Rank of 2. MAMA delivered a trailing four-quarter surprise of 121.7%, on average.
The Zacks Consensus Estimate for Mama's Creations’ current fiscal-year sales and EPS indicates respective increases of 30.3% and 66.7% from the year-ago period.
Laird Superfood, Inc. (LSF - Free Report) , a consumer product company that develops, manufactures and markets plant-based, natural and functional food and beverage products, currently carries a Zacks Rank #2. LSF delivered an earnings surprise of 100% in the last reported quarter.
The Zacks Consensus Estimate for Laird Superfood’s current fiscal-year sales and EPS implies growth of 188.2% and 104%, respectively, from the year-ago figures.