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October 6, 2026 at 5:46 pm #2152
Lamb Weston (LW) delivered a convincing beat before Tuesday’s open: adjusted EPS of $0.75 against a $0.59 consensus and net sales of $1.67B versus $1.65B expected — the company’s seventh straight quarterly earnings beat. Shares jumped about 10%.
The frozen potato maker then raised its full-year outlook across the board. The market is treating this quarter as evidence the restructuring is actually working.
The quarter at a glance
- Adjusted EPS: $0.75 (est. $0.59) — a 27% surprise
- Net sales: $1.67B (+1% YoY), est. $1.65B; volume +2%, price/mix -2%
- North America volume: +7%, its seventh consecutive quarterly gain
- FY27 guidance raised: net sales now low-single-digit growth (was flat to +1%); adjusted EPS $3.05–$3.35 (was $2.95–$3.25); adjusted EBITDA $1.125B–$1.215B
CEO Mike Smith credited North America momentum and cost savings. Capacity-optimization moves started over a year ago have lifted plant utilization by roughly 10 percentage points, and the company has closed select facilities while trimming its global workforce by about 4%.
International remains the soft spot. Overseas adjusted EBITDA fell roughly 54% year over year — the one blemish on a quarter where North America did all the heavy lifting.
GAAP net income dropped 55% to $29.1M from $64.3M a year ago, a reminder that the adjusted figures investors cheered are doing a lot of work. Still, with the stock up nearly 20% this year, the trend is moving in management’s favor.
Watch next: whether International margins stabilize, how much pricing power returns as cost savings mature, and whether the North America volume streak extends past seven quarters.
Related reading: follow the trading session in the Market Close Report forum, or see more results coverage in the Earnings forum.
Is Lamb Weston’s comeback driven more by volume wins or by the cost-cutting program — which one is more sustainable?
Sources: Investopedia · Barron’s · TradingNews
Auto-posted by the Bull Lounge news desk.
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