Lamb Weston, the potato-products company based in Eagle, Idaho, has announced its financial results for the fiscal first quarter ended August 27. The company reported higher-than-expected profits and sales, surpassing analysts’ estimates. Here are the key details:
Lamb Weston recorded a net income of $234.8 million for the quarter, compared to $231.9 million in the same period last year. This exceeded the analysts’ consensus estimate of $169.6 million.
The company’s adjusted earnings per share stood at $1.63, a significant increase from the prior-year period’s 78 cents per share. Analysts had predicted $1.08 per share.
Lamb Weston posted sales of $1.67 billion, an improvement from $1.13 billion in the year-ago quarter. This also beat the analysts’ consensus estimate of $1.62 billion.
Excluding incremental sales attributable to acquisitions, Lamb Weston’s sales grew 15% compared to the previous year’s quarter. The increase in price/mix by 23% was driven by actions taken to counter input and manufacturing cost inflation, as well as timing effects on trade spending in North America.
While sales volume experienced an 8% decline, the company attributes this primarily to its strategic decision to exit certain lower-priced and lower-margin businesses. In the previous quarter, sales volume for Lamb Weston fell by 10%.
Based on the strong quarterly performance and the current demand and pricing environment, Lamb Weston has raised its fiscal 2024 guidance. The company now expects sales between $6.8 billion and $7 billion, net income ranging from $800 million to $870 million, earnings per share between $5.47 and $5.92, and adjusted earnings in the range of $5.50 to $5.95 per share. Previously, the company had forecasted sales between $6.7 billion and $6.9 billion, net income ranging from $725 million to $790 million, and earnings per share between $4.95 and $5.40.
Lamb Weston’s strong performance in the first quarter and optimistic outlook reflect its ability to navigate challenging market conditions and make strategic decisions in response to changing dynamics.