Lamb Weston Holdings ( NYSE: LW ) stock rose sharply on Thursday after posting a big bottom-line beat on earnings and hiking full-year forecasts.
For its fiscal second quarter, the Idaho-based potato product distributor posted $1.28 in earnings per share, $0.54 above estimates, and $1.28B in revenue, $130M above the analyst consensus. Price/mix increased 30% for the quarter as the company credited “product and freight pricing actions across each of the company’s core business segments” for countering inflationary impacts.
“Because of our financial performance in the first half of fiscal 2023 and our broad operating momentum, we have raised our annual sales, gross margin and earnings targets,” CEO Tom Werner said. “We expect the continued implementation of pricing actions to counter higher input and potato costs to drive our financial results in the second half, while our volume performance will continue to be affected by supply chain constraints and inflationary pressures on consumers.”
The company now anticipates full-year net sales to range from $4.8B to $4.9B, up $100M on each end from the prior view and above the Wall Street consensus of $4.74B. Meanwhile, adjusted diluted EPS guidance of $3.75 to $4.00, up from prior guidance of $2.45 to $2.85, also easily exceeded analyst expectations of $2.98.
Shares of Lamb Weston Holdings ( LW ) rose 7.17% shortly before Thursday’s market open.
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Lamb Weston stock lifted by earnings beat, raised guidance