Lamb Weston forecasts flat sales in fiscal 2027
Lamb Weston Holdings reported fiscal fourth-quarter net sales that beat Wall Street expectations, as strong North America volume growth helped offset cost inflation and geopolitical disruptions in the Middle East that continued to depress its international business.
The french-fry maker posted net sales of $1.77 billion for the quarter ended May 31, a 5.6% increase from a year earlier and ahead of the $1.7 billion analysts had forecast. North America sales rose 9.3% to $1.21 billion, boosted by volume growth, new contract wins, market-share gains and the benefit of an extra week in the quarter.
International sales fell, Lamb Weston said, as the company faced ongoing disruptions in the Middle East and continued input-cost inflation.
“We have been taking actions to help mitigate this volatility in a challenging competitive environment,” Chief Executive Mike Smith said.
Net income fell to $109.6 million, or 79 cents a share, from $119.9 million, or 85 cents a share, in the same period a year earlier. Stripping out certain one-time items, adjusted earnings came in at 87 cents a share, well above the 63 cents a share analysts polled by FactSet had expected.
Looking ahead, Lamb Weston guided for adjusted earnings of $2.95 to $3.25 a share in fiscal 2027, above the consensus estimate of $2.93 a share. The company projected net sales to be flat to up 1% in the next fiscal year. Wall Street had modeled sales of $6.35 billion, which would represent a 4% decline from fiscal 2026.
Shares rose 1.7% to $50 in premarket trading Friday.