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 MACD Histogram crosses below signal line
LW saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on May 02, 2023. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 57 instances where the indicator turned negative. In of the 57 cases the stock moved lower in the days that followed. This puts the odds of a downward move at .
Technical Analysis (Indicators)
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 42 similar instances where the indicator moved out of overbought territory. In of the 42 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 .
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 .
Bullish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 1 day, which means it's wise to expect a price bounce in the near future.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where LW advanced for three days, in of 324 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 299 cases where LW Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend 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 79, placing this stock better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady 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 (22.222) is normal, around the industry mean (9.713). P/E Ratio (29.070) is within average values for comparable stocks, (35.023). LW's Projected Growth (PEG Ratio) (0.958) is slightly lower than the industry average of (2.696). Dividend Yield (0.010) settles around the average of (0.091) among similar stocks. P/S Ratio (3.280) is also within normal values, averaging (6.731).
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
