Lamb Weston raises annual forecasts following strong quarterly earnings

Lamb Weston has reported first-quarter fiscal 2027 earnings that exceeded analyst expectations. The company reported adjusted earnings per share of $0.75, surpassing the consensus estimate of $0.59, and revenue of $1.67 billion, which was higher than the projected $1.65 billion.

Driven by resilient demand for frozen potato products at quick-service restaurants, the company has raised its annual forecasts. Lamb Weston now projects fiscal 2027 revenue growth in the low single digits and an annual adjusted earnings forecast of $3.05 to $3.35 per share, up from the previous guidance of $2.95 to $3.25 per share.

CEO Mike Smith noted that results were bolstered by momentum in North America, though the EMEA segment continues to face challenging market conditions. The company is also managing inflationary pressures in transportation and input costs through supplier collaboration and hedging strategies.

Following the results, several financial institutions updated their outlooks. Wells Fargo & Company maintained an overweight rating but lowered its price target from $57.00 to $54.00. Other analysts, including those from JPMorgan Chase & Co. and Deutsche Bank, have also issued updated price targets and ratings.