It has been about a month since the last earnings report for Lamb Weston (LW Quick QuoteLW - Free Report) . Shares have added about 17.7% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Lamb Weston due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts.

LW Q1 Earnings Beat Estimates on Higher North America Volume

Lamb Weston reported solid first-quarter fiscal 2027 results, wherein both top and bottom lines beat the Zacks Consensus Estimate and increased year over year.  LW’s adjusted earnings were 75 cents per share, up 1.4% year over year. The bottom line beat the Zacks Consensus Estimate of 59 cents. 

Net sales amounted to $1,670.3 million, beating the Zacks Consensus Estimate of $1,654 million. The top line increased 0.7% year over year, driven by a 2% increase in sales volume and an immaterial favorable currency impact partially offset by a 2% decline in price/mix. Our model suggested a volume increase of 3.2% in the quarter.

LW’s Quarterly Results: Key Metrics & Insights

Adjusted gross profit fell 6.5% year over year to $316.8 million from $338.9 million. The adjusted gross margin decreased 140 basis points (bps) to 19%. Our model projected adjusted gross margin contraction of about 200 basis points to 18.4%. 

Adjusted selling, general and administrative expenses rose 5.1% to $139.2 million. As a percentage of sales, adjusted SG&A expenses increased 30 bps to 8.3%. Adjusted EBITDA fell 5.5% year over year to $285.6 million, while adjusted EBITDA margin contracted 110 bps to 17.1%.

LW Provides Q1 Insights by Segment

North America segment sales increased 5.2% year over year to $1,141.4 million. Volume grew 6.7%, marking the seventh consecutive quarter of volume growth, driven by stronger demand from existing customers and customer wins. Price/mix declined 1.7%, reflecting pricing and trade support as well as a mix shift toward faster-growing chain customers and private-label products.
Segment adjusted EBITDA increased 11% to $287.3 million, aided by higher volume, cost savings and $5 million of tariff refunds.

International segment sales declined 8% to $528.9 million. Volume decreased 6.4%, while price/mix fell 2%, as weaker performance in Europe continued to weigh on the business. International segment adjusted EBITDA declined 54% to $26.5 million. Lower sales, higher manufacturing costs per pound, prior-year potato cost carry-in, factory underutilization and inflation pressured results.

Lamb Weston’s Financial Health Snapshot

The company ended the quarter with cash and cash equivalents of $166.3 million, long-term debt and financing obligations (excluding the current portion) of $3,578.5 million and total shareholders’ equity of $1,806.7 million.
LW generated $234.8 million as net cash from operating activities for the 13 weeks ending Aug. 30, 2026, wherein capital expenditures amounted to $91 million.

The company returned $52 million to shareholders through dividends during the quarter and had about $245 million remaining under its share-repurchase authorization. Management declared a quarterly dividend of 38 cents per share, payable on Dec. 4, to its shareholders of record as of Nov. 6, 2026.

What to Expect From LW in FY27?

For fiscal 2027, Lamb Weston now expects net sales to increase a low-single-digit percentage from the adjusted fiscal 2026 base of $6.5 billion, compared with prior forecast of flat to 1% growth.

Adjusted EBITDA guidance increased to $1.125-$1.215 billion from $1.10-$1.20 billion. Adjusted earnings are now projected between $3.05 and $3.35 per share, up from the previous $2.95-$3.25 range. Capital spending guidance was maintained at $380-$410 million.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a upward trend in estimates review.

The consensus estimate has shifted 12.06% due to these changes.

VGM Scores

Currently, Lamb Weston has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock has a score of C on the value side, putting it in the middle 20% for value investors.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Lamb Weston has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.

Performance of an Industry Player

Lamb Weston belongs to the Zacks Food - Miscellaneous industry. Another stock from the same industry, Conagra Brands (CAG Quick QuoteCAG - Free Report) , has gained 15.2% over the past month. More than a month has passed since the company reported results for the quarter ended August 2026.

Conagra Brands reported revenues of $2.6 billion in the last reported quarter, representing a year-over-year change of -1.4%. EPS of $0.41 for the same period compares with $0.39 a year ago.

Conagra Brands is expected to post earnings of $0.34 per share for the current quarter, representing a year-over-year change of -24.4%. Over the last 30 days, the Zacks Consensus Estimate has changed -2.4%.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Conagra Brands. Also, the stock has a VGM Score of C.