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

Lamb Weston (NYSE:LW) issued its earnings results on Wednesday. The specialty retailer reported $0.50 earnings per share 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 company had revenue of $1.01 billion during the quarter, compared to analysts’ expectations of $1 billion. During the same period in the prior year, the business posted $0.66 EPS. Lamb Weston’s quarterly revenue was up 12.3% compared to the same quarter last year.

LW traded up $1.99 during midday trading on Friday, hitting $69.81. 33,283 shares of the company were exchanged, compared to its average volume of 2,812,427. The company’s 50 day simple moving average is $58.11 and its 200 day simple moving average is $63.78. The company has a current ratio of 2.67, a quick ratio of 1.95 and a debt-to-equity ratio of 6.31. Lamb Weston has a 1-year low of $50.22 and a 1-year high of $86.41. The firm has a market capitalization of $10.20 billion, a price-to-earnings ratio of 39.53, a price-to-earnings-growth ratio of 4.04 and a beta of 0.75.

The company also recently announced a quarterly dividend, which will be paid on Friday, March 4th. Investors of record on Friday, February 4th will be given a $0.245 dividend. This represents a $0.98 annualized dividend and a dividend yield of 1.40%. This is an increase from Lamb Weston’s previous quarterly dividend of $0.24. The ex-dividend date is Thursday, February 3rd. Lamb Weston’s dividend payout ratio is presently 53.71%.

A number of research firms have recently commented on LW. Jefferies Financial Group lowered their target price on Lamb Weston from $85.00 to $80.00 and set a “buy” rating for the company in a research note on Wednesday, October 6th. Zacks Investment Research raised Lamb Weston from a “sell” rating to a “hold” rating and set a $72.00 price objective for the company in a report on Friday. Two investment analysts have rated the stock with a hold rating and three have given a buy rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Buy” and a consensus price target of $84.40.

Lamb Weston announced that its Board of Directors has authorized a stock repurchase program on Friday, December 17th that authorizes the company to buyback $250.00 million in outstanding shares. This buyback authorization authorizes the specialty retailer to repurchase up to 3% of its shares through open market purchases. Shares buyback programs are often a sign that the company’s board believes its shares are undervalued.

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

A hedge fund recently raised its stake in Lamb Weston stock. Morgan Stanley raised its holdings 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 (SEC). The institutional investor owned 461,685 shares of the specialty retailer’s stock after purchasing an additional 34,488 shares during the period. Morgan Stanley owned 0.32% of Lamb Weston worth $37,239,000 at the end of the most recent reporting period. 82.85% of the stock is currently owned by institutional investors.

About Lamb Weston

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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