Lamb Weston Q3 Earnings on Deck: Key Factors You Should Understand

Lamb Weston Holdings, Inc. LW is likely to register a decline in its bottom line when it reports third-quarter fiscal 2025 earnings on April 3. The consensus mark for earnings has moved down by a penny in the past 30 days to 87 cents per share, indicating a decline of 27.5% from the year-ago quarter’s reported figure. LW has a trailing four-quarter negative earnings surprise of 21.7%, on average.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Lamb Weston’s top line is likely to increase year over year in the fiscal third quarter. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.50 billion, which indicates 2.9% growth from the year-ago quarter.Lamb Weston Price and EPS Surprise Lamb Weston price-eps-surprise | Lamb Weston QuoteThings to Consider About Lamb Weston’s Upcoming ResultsLamb Weston is facing several challenges, including sluggish restaurant traffic, customer share losses and overcapacity in the global market, all of which are impacting its volume performance. In addition, the company is experiencing heightened competitive pressures, which are affecting its price/mix. Our model forecasts a 2.9% decline in price/mix for the third quarter of fiscal 2025.On top of this, rising manufacturing costs driven by input cost inflation — particularly the increase in raw potato prices — along with inefficiencies, and higher transportation and warehousing expenses continue to put pressure on the company. As a result, we expect adjusted EBITDA to reach $305.7 million, marking an 11% decline for the to-be-reported quarter.Despite these hurdles, Lamb Weston is seeing positive outcomes from its Restructuring Plan, which is focused on improving efficiency and profitability. In addition, the company is modernizing its manufacturing capabilities to further optimize operations. The continuation of these trends bodes well for the to-be-reported quarter.Earnings Whispers for LW StockOur proven model does not predict an earnings beat for Lamb Weston this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Lamb Weston currently carries a Zacks Rank #4 (Sell) and has an Earnings ESP of -3.60%.Stocks With the Favorable CombinationHere are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.The Coca-Cola Company KO currently has an Earnings ESP of +0.47% and a Zacks Rank of 3. The Zacks Consensus Estimate for first-quarter 2025 revenues is pegged at $11.15 billion, which indicates a decrease of 1.3% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for Coca-Cola’s first-quarter earnings per share (EPS) is pegged at 72 cents, in line with the year-ago quarter’s reported figure. Coca-Cola has a trailing four-quarter earnings surprise of 5.3%, on average.RH RH currently has an Earnings ESP of +0.94% and a Zacks Rank of 3. The company is likely to register an increase in the top and bottom lines when it reports fourth-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for RH’s quarterly EPS is pegged at $1.91, up 165.3% from the year-ago period. RH has a trailing four-quarter negative earnings surprise of 113.6%, on average.The consensus estimate for RH’s quarterly revenues is pegged at $827.3 million, which implies an increase of 12.1% from the prior-year quarter.Monster Beverage MNST currently has an Earnings ESP of +0.37% and a Zacks Rank of 3. The company is expected to register growth in its top and bottom lines when it reports first-quarter 2025 results. The Zacks Consensus Estimate for MNST’s quarterly earnings has been stable in the last 30 days at 46 cents per share, indicating 9.5% growth from the year-ago quarter's number.The consensus estimate for Monster Beverage’s quarterly revenues is pegged at almost $2 billion, implying a rise of 3.7% from the figure in the prior-year quarter. MNST reported a negative earnings surprise of 5.8%, on average, in the trailing four quarters.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CocaCola Company (The) (KO): Free Stock Analysis Report Monster Beverage Corporation (MNST): Free Stock Analysis Report RH (RH): Free Stock Analysis Report Lamb Weston (LW): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks