Lamb Weston (NYSE:LW) Announces Quarterly Earnings Results, Beats Estimates By $0.17 EPS

Lamb Weston (NYSE:LW) posted its quarterly earnings data on Wednesday. The specialty retailer reported $0.50 EPS for the quarter, beating the consensus estimate of $0.33 by $0.17, RTT News reports. Lamb Weston had a return on equity of 58.42% and a net margin of 6.83%. The business had revenue of $1.01 billion for the quarter, compared to the consensus estimate of $1 billion. During the same quarter in the prior year, the business earned $0.66 earnings per share. Lamb Weston’s revenue for the quarter was up 12.3% on a year-over-year basis.

Shares of Lamb Weston stock traded up $2.45 during trading on Friday, reaching $70.27. 44,658 shares of the stock were exchanged, compared to its average volume of 2,812,427. The company has a quick ratio of 1.95, a current ratio of 2.67 and a debt-to-equity ratio of 6.31. The stock’s fifty day moving average is $58.11 and its 200 day moving average is $63.78. The firm has a market cap of $10.26 billion, a price-to-earnings ratio of 39.53, a price-to-earnings-growth ratio of 4.04 and a beta of 0.75. Lamb Weston has a 1 year low of $50.22 and a 1 year high of $86.41.

The firm also recently declared a quarterly dividend, which will be paid on Friday, March 4th. Shareholders of record on Friday, February 4th will be given a dividend of $0.245 per share. This represents a $0.98 annualized dividend and a yield of 1.39%. This is a positive change from Lamb Weston’s previous quarterly dividend of $0.24. The ex-dividend date of this dividend is Thursday, February 3rd. Lamb Weston’s dividend payout ratio is presently 53.71%.

Several equities analysts recently commented on LW shares. Jefferies Financial Group dropped their price objective on Lamb Weston from $85.00 to $80.00 and set a “buy” rating on the stock in a research note on Wednesday, October 6th. Zacks Investment Research raised shares of Lamb Weston from a “sell” rating to a “hold” rating and set a $72.00 target price on the stock in a report on Friday. Two equities research analysts have rated the stock with a hold rating and three have assigned a buy rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Buy” and a consensus target price of $84.40.

In other Lamb Weston news, Director Peter J. Bensen bought 5,000 shares of the firm’s stock in a transaction on Monday, October 11th. The stock was acquired at an average price of $55.75 per share, with a total value of $278,750.00. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Robert A. Niblock bought 2,500 shares of the firm’s stock in a transaction on Wednesday, October 20th. The shares were acquired at an average cost of $56.40 per share, with a total value of $141,000.00. The disclosure for this purchase can be found here. Corporate insiders own 0.75% of the company’s stock.

An institutional investor recently raised its position in Lamb Weston stock. Morgan Stanley increased its stake in Lamb Weston Holdings, Inc. (NYSE:LW) by 8.1% during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 461,685 shares of the specialty retailer’s stock after purchasing an additional 34,488 shares during the quarter. Morgan Stanley owned 0.32% of Lamb Weston worth $37,239,000 at the end of the most recent quarter. Hedge funds and other institutional investors own 82.85% of the company’s stock.

Lamb Weston announced that its board has authorized a share buyback program on Friday, December 17th that permits the company to buyback $250.00 million in shares. This buyback authorization permits the specialty retailer to purchase up to 3% of its stock through open market purchases. Stock buyback programs are typically an indication that the company’s management believes its stock is undervalued.

Lamb Weston Company Profile

Lamb Weston Holdings, Inc engages in the production, distribution, and marketing of value-added frozen potato products. It operates through the following business segments: Global, Foodservice, Retail, and Other. The Global segment includes branded and private label frozen potato products sold in North America and international markets.

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Earnings History for Lamb Weston (NYSE:LW)

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