Lamb Weston Holdings, Inc. (NYSE: LW) saw its stock price surge 5.06% in pre-market trading on Thursday following the release of its third-quarter fiscal 2025 results and announcements of strategic initiatives. The frozen potato products manufacturer reported earnings that surpassed analyst expectations and revealed plans to enhance shareholder value.

The company reported adjusted earnings per share of $1.10 for the third quarter, significantly beating the analyst consensus estimate of $0.87. This represents a strong performance despite an 8.33% decrease from the same period last year. Quarterly sales reached $1.52 billion, exceeding the estimated $1.49 billion and marking a 4.32% increase year-over-year. Lamb Weston's adjusted EBITDA for the quarter stood at $363.8 million, considerably higher than the expected $301.4 million.

In addition to the robust financial results, Lamb Weston announced that it has engaged AlixPartners to assist in evaluating opportunities for near- and long-term value creation. This strategic move, coupled with the company's plans to deliver a further $200 million in capital spending reductions in fiscal 2026, signals a strong commitment to improving operational efficiency and enhancing shareholder returns. Lamb Weston also reaffirmed its fiscal year 2025 outlook, projecting adjusted EPS between $3.05 and $3.20 and sales ranging from $6.35 billion to $6.45 billion, which has further boosted investor confidence in the company's future prospects.