Lamb Weston (LW) Tops Q1 EPS by 5c; Revenues Beat; Reaffirms FY19 Fiscal Outlook

Lamb Weston (NYSE: LW) reported Q1 EPS of $0.73, $0.05 better than the analyst estimate of $0.68. Revenue for the quarter came in at $915 million versus the consensus estimate of $880.1 million.

• Net sales increased 12% to $915 million
• Income from operations increased 11% to $153 million; Adjusted Income from Operations(1) increased 9% to $153 million
• Adjusted EBITDA including unconsolidated joint ventures(1) increased 11% to $213 million
• Diluted EPS increased to $0.73 from $0.56; and includes $0.10 benefit from a lower tax rate as a result of U.S. tax reform
• Adjusted Diluted EPS(1) increased to $0.73 from $0.57; and includes $0.10 benefit from a lower tax rate as a result of U.S. tax reform
• Reaffirms FY 2019 outlook

“We’re pleased with our solid results in the first quarter, with each of our core business segments driving sales growth and expanding product contribution margins,” said Tom Werner, President and CEO. “Our results continue to reflect the strong execution by our commercial, supply chain and support teams, as well as our ongoing commitment to invest in our production capacity, operating, sales and product innovation capabilities to support our customers’ growth, improve operating efficiency and execute on our strategies over the long term.”

“For the remainder of fiscal 2019, we continue to anticipate the operating environment in North America will remain generally favorable, with solid demand for frozen potato products and tight manufacturing capacity. However, we expect that our European joint venture, Lamb Weston/Meijer, will face challenges arising from a poor potato crop. Although it’s too early to determine the full impact of these challenges, we believe that Lamb Weston/Meijer’s pricing and cost reduction actions, along with opportunities in our North American and export businesses, enable us to remain on track to deliver on our fiscal 2019 targets.”

For earnings history and earnings-related data on Lamb Weston (LW) click here.

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