Lamb Weston, a renowned potato products company, is expected to release its financial results for the fiscal fourth quarter before the market opens on Tuesday. Here are the key details you should be aware of:
Profit Expectations
According to analysts surveyed by FactSet, Lamb Weston is anticipated to report a profit of $1.07 per share, compared to 65 cents per share in the same period last year. Wall Street analysts project adjusted earnings of $1.04 per share.
Revenue Projection
Revenue for the quarter, which typically concludes around the end of May, is anticipated to be $1.66 billion. This is a significant increase from $1.15 billion in the same quarter a year ago.
Key Points to Observe:
Input Costs
Lamb Weston has witnessed escalating costs across various aspects, including edible oils, ingredients, labor, and transportation, over the past couple of years. Investors will closely monitor whether there are indications of a slowdown in cost increases. Additionally, executives might provide insights into their expectations regarding future cost growth.
Pricing Strategy
Similar to its industry counterparts, Lamb Weston has resorted to raising prices to combat rising costs. However, consumers have displayed some signs of reduced spending due to these price hikes. Investors will be keen to decipher whether the company has concluded price increases or intends to continue passing along higher costs to consumers.
Outlook for Fiscal Year 2024
The company is also expected to disclose its financial outlook for fiscal year 2024, which recently commenced. Analysts surveyed by FactSet projected adjusted earnings of $5.00 per share on sales of $6.79 billion for fiscal year 2024.