NEW YORK CITY, NY / ACCESSWIRE / December 22, 2024 / Bronstein, Gewirtz & Grossman, LLC is investigating potential claims on behalf of purchasers of Lamb Weston Holdings, Inc. ("Lamb Weston" or "the Company") (NYSE:LW). Investors who purchased Lamb Weston securities prior to July 25, 2023, and continue to hold to the present, are encouraged to obtain additional information and assist the investigation by visiting the firm's site: bgandg.com/LW.
I am neutral on Lamb Weston Holdings due to poor fundamentals and lack of positive catalysts, except for uncertain M&A prospects. LW's latest earnings report showed significant declines in revenue, gross profit, EBIT, and EPS, with management cutting guidance for FY25 and FY26. The only potential upside is a possible acquisition by Post Holdings, which could offer synergies and cross-selling opportunities, but its timing and terms are uncertain.
Lamb Weston had another down quarter as it works through both operational and end market headwinds. Despite near-term challenges, Lamb Weston's valuation is attractive for long-term investors, with potential earnings recovery and a sub-15x P/E ratio for 2027. I'm not convinced that the activist investor campaign will bear fruit, but after this week's drop, the valuation isn't too demanding regardless.
LW's second-quarter fiscal 2025 results reflect lower sales and earnings on higher manufacturing costs and weaker volumes.
U.S. stocks traded higher midway through trading, with the S&P 500 gaining around 0.4% on Thursday.
Shares of Lamb Weston (LW -21.23%) -- North America's largest potato producer -- were sliding again after it delivered third-quarter results before the start of Thursday trading that missed estimates, offered weak guidance, and said it was replacing its CEO.
Lamb Weston Holdings, Inc. (NYSE:LW ) Q2 2025 Results Conference Call December 19, 2024 8:00 AM ET Company Participants Dexter Congbalay - Vice President, Investor Relations Tom Werner - President, Chief Executive Officer Bernadette Madarieta - Chief Financial Officer Conference Call Participants Andrew Lazar - Barclays Peter Galbo - Bank of America Tom Palmer - Citi Ken Goldman - JPMorgan Robert Moskow - TD Cowen Rob Dickerson - Jefferies Alexia Howard - Bernstein Steve Powers - Deutsche Bank Max Gumport - BNP Paribas Matt Smith - Stifel Marc Torrente - Wells Fargo Securities Carla Casella - JPMorgan Operator Good day, and welcome to the Lamb Weston Second Quarter Fiscal Year 2025 Earnings Call. Today's call is being recorded.
Post Holdings has generated solid performance due to successful M&A integration, resulting in strong free cash flow, despite recent share pullbacks from Lamb Weston deal rumors. Recent results highlight normalized margins driven by price stabilization and improved product mix, partially offset by increased marketing spending. Post's strategy focuses on buybacks, bolt-on M&A, and debt reduction, aiming for 3-4% EBITDA growth through portfolio optimization.
Lamb Weston (LW) came out with quarterly earnings of $0.66 per share, missing the Zacks Consensus Estimate of $1.02 per share. This compares to earnings of $1.45 per share a year ago.
Shares of Lamb Weston (LW) plunged nearly 20% in premarket trading Thursday after the maker of frozen fries swung to a surprise loss, cut its fiscal 2025 guidance, and appointed a new Chief Executive Officer (CEO).
NEW YORK CITY, NY / ACCESSWIRE / December 18, 2024 / Bronstein, Gewirtz & Grossman, LLC is investigating potential claims on behalf of purchasers of Lamb Weston Holdings, Inc. ("Lamb Weston" or "the Company") (NYSE:LW). Investors who purchased Lamb Weston securities prior to July 25, 2023, and continue to hold to the present, are encouraged to obtain additional information and assist the investigation by visiting the firm's site: bgandg.com/LW.
LW faces pressure from JANA Partners for leadership changes amid financial struggles and operational missteps.