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.