Lamb Weston Q3 Earnings on the Horizon: Is There a Beat in Store?

Lamb Weston Holdings, Inc. LW is likely to witness a top and bottom-line decline when it reports third-quarter fiscal 2026 earnings on April 1. The Zacks Consensus Estimate for revenues is pegged at $1.48 billion, indicating a 2.4% drop from the prior-year quarter’s reported figure. The consensus mark for earnings has moved down 2 cents in the past seven days to 61 cents per share. The projection indicates a decrease of 44.6% from the figure reported in the year-ago quarter. LW delivered a trailing four-quarter earnings surprise of 25.6%, on average.Lamb Weston Price, Consensus and EPS Surprise Lamb Weston price-consensus-eps-surprise-chart | Lamb Weston QuoteThings to Consider About Lamb Weston’s Upcoming ResultsLamb Weston is likely to have witnessed continued pressure from unfavorable price/mix dynamics in the fiscal third quarter. Pricing actions and trade investments to support customers are likely to have weighed on realized pricing, while an unfavorable shift toward lower-margin channels and private-label offerings is anticipated to have persisted. Our model indicates a 5.6% decline in price/mix for the third quarter of fiscal 2026.Our model implies that net sales in the North America and International segments are expected to decline 1.2% and 4% year over year, respectively, in the fiscal third quarter. Margins are likely to have remained under pressure in the to-be-reported quarter. Higher manufacturing costs in international markets have been acting as a key drag, particularly due to ramp-up expenses related to the Argentina facility and underutilization in Europe. In addition, the company is likely to have faced continued cost inflation across labor, transportation and utilities.Despite these headwinds, Lamb Weston is likely to have benefited from continued volume momentum, supported by customer wins and strong demand in North America. The company’s cost-savings initiatives are likely to have provided some cushion, while improving operational efficiencies and stable demand trends are anticipated to have supported overall performance in the to-be-reported quarter.Earnings Whispers for LW StockOur proven model predicts 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 exactly the case here.Lamb Weston currently has a Zacks Rank #3 and an Earnings ESP of +6.90%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.More Stocks With the Favorable CombinationHere are a few other companies worth considering, as our model shows that these, too, have the right combination of elements to beat on earnings this reporting cycle.Hormel Foods Corporation HRL currently has an Earnings ESP of +1.70% and a Zacks Rank of 2. The consensus estimate for Hormel Foods’ quarterly revenues is pinned at $2.95 billion, which calls for 1.6% growth 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 the upcoming quarter’s EPS is pegged at 35 cents, indicating flat year-over-year growth. HRL delivered a trailing four-quarter earnings surprise of negative 0.4%, on average.Tyson Foods, Inc. TSN currently has an Earnings ESP of +4.00% and a Zacks Rank of 3. The consensus estimate for Tyson Foods’ quarterly revenues is pinned at $13.80 billion, which calls for 5.6% growth from the figure reported in the prior-year quarter. The Zacks Consensus Estimate for the upcoming quarter’s EPS is pegged at 81 cents, which implies a 12% decrease year over year. TSN delivered a trailing four-quarter earnings surprise of nearly 16.5%, on average.Monster Beverage Corporation MNST currently has an Earnings ESP of +0.60% and a Zacks Rank of 3. The consensus mark for the upcoming quarter’s revenues is pegged at $2.15 billion, which indicates an increase of 15.7% from the figure reported in the year-ago quarter.The Zacks Consensus Estimate for Monster Beverage’s quarterly EPS of 53 cents implies an increase of 12.8% from 47 cents reported in the year-ago quarter. MNST delivered a trailing four-quarter earnings surprise of 7.8%, on average.Free Report: Profiting from the 2nd Wave of AI ExplosionThe next phase of the AI explosion is poised to create significant wealth for investors, especially those who get in early. It will add literally trillion of dollars to the economy and revolutionize nearly every part of our lives.Investors who bought shares like Nvidia at the right time have had a shot at huge gains.But the rocket ride in the "first wave" of AI stocks may soon come to an end. The sharp upward trajectory of these stocks will begin to level off, leaving exponential growth to a new wave of cutting-edge companies.Zacks' AI Boom 2.0: The Second Wave report reveals 4 under-the-radar companies that may soon be shining stars of AI’s next leap forward.Access AI Boom 2.0 now, absolutely free >>Want 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 Hormel Foods Corporation (HRL): Free Stock Analysis Report Tyson Foods, Inc. (TSN): Free Stock Analysis Report Monster Beverage Corporation (MNST): 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