Lamb Weston (LW) got here out with quarterly earnings of $0.66 per share, lacking the Zacks Consensus Estimate of $1.02 per share. This compares to earnings of $1.45 per share a 12 months in the past. These figures are adjusted for non-recurring objects.
This quarterly report represents an earnings shock of -35.29%. 1 / 4 in the past, it was anticipated that this frozen meals provider would publish earnings of $0.73 per share when it really produced earnings of $0.73, delivering no shock.
During the last 4 quarters, the corporate has not been in a position to surpass consensus EPS estimates.
Lamb Weston
The sustainability of the inventory’s fast worth motion based mostly on the recently-released numbers and future earnings expectations will largely depend upon administration’s commentary on the earnings name.
Lamb Weston shares have misplaced about 27.6% for the reason that starting of the 12 months versus the S&P 500’s achieve of 23.1%.
What’s Subsequent for Lamb Weston?
Whereas Lamb Weston has underperformed the market thus far this 12 months, the query that involves traders’ minds is: what’s subsequent for the inventory?
There aren’t any straightforward solutions to this key query, however one dependable measure that may assist traders deal with that is the corporate’s earnings outlook. Not solely does this embrace present consensus earnings expectations for the approaching quarter(s), but in addition how these expectations have modified these days.
Empirical analysis reveals a robust correlation between near-term inventory actions and developments in earnings estimate revisions. Traders can monitor such revisions by themselves or depend on a tried-and-tested ranking software just like the Zacks Rank, which has a powerful monitor file of harnessing the facility of earnings estimate revisions.
Forward of this earnings release, the estimate revisions development for Lamb Weston: unfavorable. Whereas the magnitude and course of estimate revisions might change following the corporate’s just-released earnings report, the present standing interprets right into a Zacks Rank #4 (Promote) for the inventory. So, the shares are anticipated to underperform the market within the close to future. You’ll be able to see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
It is going to be attention-grabbing to see how estimates for the approaching quarters and present fiscal 12 months change within the days forward. The present consensus EPS estimate is $1.30 on $1.61 billion in revenues for the approaching quarter and $4.24 on $6.65 billion in revenues for the present fiscal 12 months.
Traders must be conscious of the truth that the outlook for the trade can have a fabric affect on the efficiency of the inventory as properly. When it comes to the Zacks Trade Rank, Meals – Miscellaneous is at the moment within the backside 48% of the 250 plus Zacks industries. Our analysis reveals that the highest 50% of the Zacks-ranked industries outperform the underside 50% by an element of greater than 2 to 1.
One other inventory from the broader Zacks Client Staples sector, Helen of Troy (HELE), has but to report outcomes for the quarter ended November 2024.
This private and family merchandise firm is predicted to publish quarterly earnings of $2.61 per share in its upcoming report, which represents a year-over-year change of -6.5%. The consensus EPS estimate for the quarter has remained unchanged during the last 30 days.
Helen of Troy’s revenues are anticipated to be $530.38 million, down 3.5% from the year-ago quarter.
Ought to You Spend money on Lamb Weston (LW)?
Earlier than you spend money on Lamb Weston (LW), wish to know the perfect shares to purchase for the following 30 days? Try Zacks Funding Analysis for our free report on the 7 best stocks to purchase.
Zacks Funding Analysis has been dedicated to offering traders with instruments and unbiased analysis since 1978. For greater than 1 / 4 century, the Zacks Rank stock-rating system has greater than doubled the S&P 500 with a mean achieve of +24.08% per 12 months. (These returns cowl a interval from January 1, 1988 via Might 6, 2024.)
Lamb Weston (LW) : Free Stock Analysis Report
Helen of Troy Limited (HELE) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the creator and don’t essentially replicate these of Nasdaq, Inc.
