Lamb Weston Expected to Log Lower 1Q Profit, Revenue -- Earnings Preview

Dow Jones
Sep 30

By Connor Hart

 

Lamb Weston is scheduled to report fiscal first-quarter earnings before the market opens Tuesday. Here is what you need to know:

SALES: The french-fry maker is expected to post $1.62 billion in sales for the August-ended quarter, according to analysts polled by FactSet, a slight decrease from the $1.65 billion it notched a year earlier.

NET INCOME: The Eagle, Idaho, company is expected to post a profit of $71.8 million, down from $127.4 million in the year-earlier period.

ADJUSTED EARNINGS: Stripping out certain one-time items, earnings are expected to come in at 54 cents a share. That is compared with adjusted earnings of 73 cents a share in last year's comparable quarter.

Shares have gained 7.8% over the past three months, though they have fallen more than 16% so far this year.

WHAT TO WATCH

-- Lamb Weston is undergoing a restructuring that aims to cut costs and improve working capital. Its cost-savings efforts have included a workforce reduction of about 4% disclosed in July, which came after a previous 4% reduction disclosed last October. The company, which has around 10,000 employees, has said its cost-savings program is expected to deliver at least $250 million of annual run-rate savings by the end of fiscal 2028. Investors will be looking for updates regarding the restructuring and insights regarding savings.

-- The company last quarter called out weak restaurant traffic trends around the world, particularly in its largest markets of the U.S. and U.K., which hurt results. Investors will be looking for commentary on how often inflation-weary consumers are eating out, and how these trends are affecting Lamb Weston's operations.

 

Write to Connor Hart at connor.hart@wsj.com

 

(END) Dow Jones Newswires

September 29, 2025 14:26 ET (18:26 GMT)

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