Lamb Weston shares jump 3% on Q1 beat-and-raise

Investing.com -- Lamb Weston Holdings Inc (NYSE: LW) reported first quarter results that exceeded analyst expectations and raised its full-year outlook, sending shares up 3.5% following the announcement.

The frozen potato products supplier posted adjusted earnings per share of $0.75, beating the analyst consensus of $0.59 by $0.16. Net sales increased 1% YoY to $1.67 billion, surpassing the $1.65 billion estimate. The company raised its full-year adjusted EPS guidance to $3.05-$3.35, with a midpoint of $3.20 that exceeds the analyst consensus of $3.01. Lamb Weston also increased its adjusted EBITDA outlook to $1.125 billion-$1.215 billion from the prior range of $1.10 billion-$1.20 billion.

"We are off to a solid start to the year, delivering first quarter net sales and profit above our expectations," said Mike Smith, president and chief executive officer. "Our first quarter results were driven by continued momentum in North America where our strong customer relationships fueled sales volume growth and we continued to drive cost savings."

North America segment sales rose 5% to $1.14 billion, driven by 7% volume growth from higher demand from existing customers and customer wins. Segment adjusted EBITDA increased 11% to $287 million, benefiting from higher sales volumes, cost savings initiatives, and $5 million in tariff refunds. However, the International segment faced headwinds, with sales declining 8% to $529 million and segment adjusted EBITDA falling 54% to $27 million, primarily due to challenging market conditions in Europe.

Adjusted net income remained flat at $103 million compared to the prior year quarter, while reported net income declined 55% to $29 million. The company reported adjusted diluted EPS of $0.75, up slightly from $0.74 in the year-ago period.

Original Article

You May Also Be Interested In

• VeriSign falls on third quarter earnings miss
• Consumer Portfolio Services (CPSS) Reports Q3 EPS of $0.30
• Boston Beer Co. (SAM) Tops Q3 EPS by 15c; offers guidance