NYSE$LW
Lamb Weston Holdings Inc · Q3 2024 earnings
Q3 2024 earnings · · Investor relations
Briefing
Lamb Weston's financial results for Q3 2024 were reported, impacted by ERP transition and excess raw potatoes write-off, leading to reduced sales and earnings guidance for fiscal year 2024.
Lamb Weston's Q3 2024 results were negatively impacted by a new ERP system transition in North America, leading to reduced visibility of finished goods inventories and affecting customer order fulfillment. Net sales increased by 16% to $1,458.3 million, but excluding the LW EMEA Acquisition, net sales decreased by 12%. The company updated its fiscal year 2024 outlook, lowering net sales, net income, and Adjusted EBITDA targets.
- Net sales increased 16% to $1,458 million, including $357 million from the LW EMEA Acquisition.
- Income from operations declined 16% to $224 million.
- Adjusted Income from Operations declined from $269 million to $263 million.
- The ERP transition negatively impacted fiscal third quarter net income by approximately $72 million and Adjusted EBITDA by approximately $95 million.
Headline financials
Revenue & EPS history
Lamb Weston · Revenue · Quarterly
$1.46B
Revenue by segment
Lamb Weston · $1.67B total across 2 segments · Q1 2024
- North America$1.14B—68.2%
- International$530M—31.8%
Forward guidance
Lamb Weston updated its financial targets for fiscal 2024, including net sales, net income, Adjusted EBITDA, and capital expenditures.
Tailwinds
- Targeting net sales of $1.69 billion to $1.75 billion in fiscal fourth quarter.
- Growth versus prior year quarter driven by higher price/mix.
- Targeting Adjusted EBITDA of $350 million to $375 million in fiscal fourth quarter.
- Expect higher net sales and Adjusted Gross Profit to drive earnings growth.
- Maintaining targets for depreciation and amortization expense of approximately $300 million and interest expense of approximately $140 million.
Headwinds
- Annual net sales target range updated to $6.54 billion to $6.60 billion from $6.8 billion to $7.0 billion.
- Net income target ranges updated to $770 million to $790 million from $830 million to $900 million.
- Diluted EPS target updated to $5.30 to $5.45 from $5.70 to $6.15.
- Adjusted EBITDA target range updated to $1,480 million to $1,510 million from $1,540 million to $1,620 million.
- Adjusted Net Income target ranges updated to $800 million to $820 million from $830 million to $900 million.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 19 quarterly earnings reports · overlaid with Q3 2024
-1.3%
Avg return
Earnings day
-1.2%
Avg return
5 days after
+0.1%
Avg return
30 days after
52%
23 / 44 earnings
Positive
+13.9%
Q2 2023
Best reaction
-32.6%
Q4 2024
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q3 2026 | -0.6% | -2.8% | — | |
| Q2 2026 | -25.0% | -28.4% | -27.0% | |
| Q1 2026 | +4.5% | +13.0% | +11.7% | |
| Q4 2025 | -2.1% | -2.4% | -1.5% | |
| Q3 2025 | +10.0% | -3.1% | -4.9% | |
| Q2 2025 | -20.6% | -18.6% | -23.2% | |
| Q1 2025 | +2.8% | +6.3% | +20.0% | |
| Q4 2024 | -32.6% | -28.5% | -20.3% | |
| Q3 2024 | -21.1% | -20.5% | -15.9% | |
| Q2 2024 | +1.0% | +2.4% | +1.1% | |
| Q1 2024 | +3.3% | +6.5% | +4.0% | |
| Q4 2023 | -9.7% | -9.4% | -15.1% | |
| Q3 2023 | +3.0% | +3.7% | +7.6% | |
| Q2 2023 | +13.9% | +12.1% | +12.2% | |
| Q1 2023 | +4.9% | +5.2% | +8.4% | |
| Q4 2022 | +6.7% | +7.3% | +7.4% | |
| Q3 2022 | +9.7% | +9.6% | +4.5% | |
| Q2 2022 | +11.3% | +9.8% | -0.6% | |
| Q1 2022 | -9.5% | -11.6% | -7.5% | |
| Q4 2021 | -12.2% | -12.2% | -15.2% | |
| Q3 2021 | -4.1% | -2.8% | -2.4% | |
| Q2 2021 | +0.3% | -2.0% | +3.7% | |
| Q1 2021 | +5.9% | +3.5% | -5.4% | |
| Q4 2020 | -15.2% | -14.8% | -11.4% | |
| Q3 2020 | -12.6% | -9.2% | +2.2% | |
| Q2 2020 | +7.9% | +8.5% | +8.6% | |
| Q1 2020 | +5.9% | +3.2% | +5.4% | |
| Q4 2019 | -6.0% | -4.3% | +2.9% | |
| Q3 2019 | -1.2% | -3.2% | -10.3% | |
| Q2 2019 | -3.3% | -4.5% | -0.8% | |
| Q1 2019 | +9.6% | +13.3% | +17.1% | |
| Q4 2018 | +2.5% | +2.8% | -1.9% | |
| Q3 2018 | +4.0% | +7.3% | +9.5% | |
| Q2 2018 | +2.9% | +3.5% | +1.3% | |
| Q1 2017 | +3.0% | +3.5% | +10.5% | |
| Q1 2018 | +3.0% | +3.5% | +10.5% | |
| Q4 2015 | -1.1% | -2.1% | +0.6% | |
| Q1 2016 | -1.1% | -2.1% | +0.6% | |
| Q4 2017 | -1.1% | -2.1% | +0.6% | |
| Q3 2016 | +3.0% | +2.7% | -0.4% | |
| Q3 2017 | +3.0% | +2.7% | -0.4% | |
| Q4 2016 | +0.0% | +0.9% | +5.9% | |
| Q2 2017 | +0.0% | +0.9% | +5.9% | |
| Q2 2016 | +0.0% | +0.9% | +5.9% |
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