As global food producers navigate fluctuating costs and shifting consumer demands, companies like Lamb Weston Holdings Inc (NYSE:LW) are under pressure to adapt quickly. With the industry experiencing both challenges and opportunities, investors are keenly watching earnings reports for signs of resilience and growth potential.
Lamb Weston is scheduled to report earnings for the first quarter of fiscal 2026 on Tuesday, Sept. 30.
The company is likely to report an earnings beat, driven by gross margin, and the current estimates for the fiscal second quarter appear “too low,” according to JPMorgan.
The Lamb Weston Holdings Analyst: Analyst Thomas Palmer maintained a Neutral rating on the stock.
The Lamb Weston Holdings Thesis: The company’s earnings beats of 25% in the third and fourth quarters of fiscal 2025 had driven the stock higher by 10%, Palmer said in the note.
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He added, however, that the stock has risen by 13% over the past two months, suggesting that the potential upside for the first quarter is “at least partially reflected” in the current share price.
“We do not necessarily think LW is totally out of the woods on its margin pressures – not when price concessions are likely for 1/3 of customer contracts that will be renegotiated for CY26,” the analyst wrote.
The worst headwinds to Lamb Weston Holdings’ sales and margins seem to be in the rearview mirror, he further stated.
LW Price Action: Lamb Weston Hldgs shares were up 2.39% at $57.43 at the time of publication on Tuesday. The stock is trading within its 52-week range of $47.87 to $83.98, according to Benzinga Pro data.
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