Lamb Weston (LW, $66.32) beats Q4 earnings expectations; but misses revenue estimates
Lamb Weston Holdings, Inc. reported its fiscal third-quarter results, with earnings topping Zacks Consensus Estimate, even as revenue fell short of expectations.
The food processing company’s earnings climbed +62% from the year-ago quarter to 73 cents per share came, well above the Zacks Consensus Estimate of 44 cents. The bottom line was bolstered by higher income from operations and equity method investment earnings.
Net sales rose +7% year-over-year to $955 million, missing the Zacks Consensus Estimate of $962.4 million. Price/mix increased 12%, on gains from pricing strategies adopted by the company’s business segments to offset input, manufacturing and transportation cost inflation. Volume dropped -5% due to reduced export volume and shipments to retail channels.
Revenue in the Global segment rose +2% to $487.9 million. Foodservice sales climbed +34% to $294.5 million. In the Retail segment, sales fell -12% to $143.6 million.
Looking ahead, for fiscal full-year 2022, the company projects net sales growth to exceed its long-term goal of low-to-mid single digits. The company is expecting fourth-quarter fiscal 2022 net sales growth to be mainly boosted by price/mix, thanks to its pricing strategy to offset input and transportation cost inflation.
LW sees its Stochastic Oscillator recovers from oversold territory
On June 01, 2023, the Stochastic Oscillator for LW moved out of oversold territory and this could be a bullish sign for the stock. Traders may want to buy the stock or buy call options. Tickeron's A.I.dvisor looked at 54 instances where the indicator left the oversold zone. In of the 54 cases the stock moved higher in the following days. This puts the odds of a move higher at over .
Technical Analysis (Indicators)
Bullish Trend Analysis
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where LW advanced for three days, in of 326 cases, the price rose further within the following month. The odds of a continued upward trend are .
LW may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 295 cases where LW Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day RSI Indicator for LW moved out of overbought territory on May 22, 2023. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 45 similar instances where the indicator moved out of overbought territory. In of the 45 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Momentum Indicator moved below the 0 level on May 22, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on LW as a result. In of 88 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for LW turned negative on May 02, 2023. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 55 similar instances when the indicator turned negative. In of the 55 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where LW declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 80, placing this stock better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. LW’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (22.831) is normal, around the industry mean (9.979). P/E Ratio (29.851) is within average values for comparable stocks, (34.713). LW's Projected Growth (PEG Ratio) (0.986) is slightly lower than the industry average of (2.653). Dividend Yield (0.009) settles around the average of (0.056) among similar stocks. P/S Ratio (3.374) is also within normal values, averaging (29.375).
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a producer of frozen potato products
Industry FoodSpecialtyCandy
LW and
Correlation & Price change
A.I.dvisor indicates that over the last year, LW has been loosely correlated with POST. These tickers have moved in lockstep 50% of the time. This A.I.-generated data suggests there is some statistical probability that if LW jumps, then POST could also see price increases.
