Lamb Weston Holdings (NYSE:LW) saw its shares rise 6% in premarket trading Tuesday after reporting first-quarter earnings that surpassed Wall Street forecasts, supported by a strong potato harvest.
The U.S.-based producer of fries and potato products posted adjusted earnings of 74 cents per share for the quarter ending Aug. 24, exceeding analysts’ estimates of 55 cents.
Revenue increased slightly to $1.66 billion, up from $1.65 billion a year ago, and above the expected $1.62 billion.
The company confirmed its fiscal 2026 outlook, projecting net sales of $6.35 billion to $6.55 billion and adjusted EBITDA between $1.0 billion and $1.2 billion, with planned capital expenditures around $500 million.
Sales in North America declined 2% due to weaker pricing, while international revenue grew 4%, boosted by favorable currency movements and stronger demand in Asia. The company said its cost-saving initiatives helped reduce expenses.
Chief Executive Mike Smith said the quarter demonstrated “solid volume growth and positive customer momentum,” adding that the “Focus to Win” cost-efficiency program was making good progress.
The board also approved a dividend of 37 cents per share, payable on Nov. 28.
Lamb Weston Holdings stock price
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