Lamb Weston Holdings Inc. shares climbed 10.6% in morning trading Tuesday after the frozen potato products manufacturer reported first-quarter fiscal 2027 results that exceeded analyst expectations.

The company posted adjusted earnings of $0.75 per share for the quarter, surpassing the consensus estimate of $0.59 by $0.16. Revenue reached $1.67 billion, above the $1.65 billion analysts had projected.

Sales increased 1% for the quarter, driven by a 2% rise in volume that was partially offset by a 2% decline in price and mix. North American sales grew 5%, marking the seventh straight quarter of volume growth, while international sales fell 8%.

Adjusted EBITDA totaled $285.6 million, beating analyst estimates of $262 million by approximately 9%.

The company raised its full-year fiscal 2027 earnings per share guidance to a range of $3.05 to $3.35.

The board declared a quarterly dividend of $0.38 per share.

Insider activity showed $19.4 million in purchases over the past 12 months with no insider selling during that period.

Wells Fargo maintained an "overweight" rating on the stock with a $54 price target before the earnings report.