Eagle, Idaho-based Lamb Weston Holdings, Inc. (LW) is a leading global supplier of frozen potato products. The company specializes in manufacturing and distributing value-added potato items, primarily French fries, to restaurants, quick-service chains, and retail customers worldwide. It is currently valued at a market cap of $5.7 billion, and the company is scheduled to announce its fiscal Q3 earnings for 2026 before the market opens on Wednesday, April 1.
Before this event, analysts expect this packaged food company to report a profit of $0.63 per share, down 42.7% from $1.10 per share in the year-ago quarter. The company has surpassed Wall Street’s earnings estimates in each of the last four quarters, which is impressive.
For the current fiscal year, ending in May 2026, analysts expect LW’s EPS to drop 15.2% from $3.35 per share in fiscal 2025 to $2.84 per share. However, its EPS is expected to grow 10.6% year over year to $3.14 in fiscal 2027.
LW has declined 23.1% over the past 52 weeks, considerably underperforming both the S&P 500 Index's ($SPX) 13.7% return and the State Street Consumer Staples Select Sector SPDR ETF’s (XLP) 2.2% uptick over the same time period.
Lamb Weston has underperformed the broader market due to its weak growth, margin pressure, and limited future upside. While volumes have grown, gains have been offset by weaker pricing and an unfavorable product mix, limiting revenue growth and profitability. The company has delivered sluggish organic revenue growth recently, indicating soft demand in its core business. Looking ahead, analysts expect revenue growth to stall, further dampening sentiment.
Wall Street analysts are moderately optimistic about LW’s stock, with a "Moderate Buy" rating overall, which is a step up from “Hold” a month ago. Among 12 analysts covering the stock, three recommend "Strong Buy," and nine suggest "Hold.” The mean price target for LW is $53, indicating a 27.7% potential upside from the current levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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