Lamb Weston Set to Report Fiscal First-Quarter Results

Lamb Weston is gearing up to announce its fiscal first-quarter results on Thursday morning. Here are the key details you need to know:

Profit Expectations

Analysts are projecting that the potato-products company will post a profit of $169.6 million for the quarter. This compares to a profit of $232 million during the same quarter the previous year.

Adjusted Earnings

Stripping out one-time items, earnings are expected to be $1.08 per share, according to analysts.

Revenue Projection

Revenue is anticipated to come in at $1.62 billion, a significant increase from the $1.13 billion reported during the year-ago quarter.

Key Factors to Watch

Input Costs

Lamb Weston, like other food manufacturers, has been grappling with inflated costs for essential inputs such as raw potatoes, labor, energy, edible oils, and ingredients used in product coatings (grains and starches). Investors will closely monitor the impact of these costs on the company's performance, and whether there will be any relief in the new fiscal year.

Pricing Strategy

To counteract higher costs, Lamb Weston and its peers have been implementing price hikes over the past year. In the fiscal fourth quarter, higher prices and an improved product mix contributed to a 24% increase in the company's top line. Analysts will be eager to gauge the impact of pricing on Lamb Weston's sales growth in the current quarter.

Sales Volumes

As consumers face increasing prices across various sectors, including food and fuel, spending habits have been impacted. In the previous fiscal fourth quarter, Lamb Weston experienced a 10% decline in sales volume. The company attributed this drop to its exit from certain lower-priced and lower-margin business segments. Given this backdrop, Lamb Weston expects continued pressure on sales volumes for the foreseeable future.