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NEW YORK - Lamb Weston Holdings, Inc. (NYSE:LW) reported third quarter fiscal 2025 results that exceeded analyst expectations, sending its stock up 5.34% in early trading.
The frozen potato products maker posted adjusted earnings per share of $1.10, beating the consensus estimate of $0.89 by 21 cents. Revenue for the quarter rose 4% YoY to $1.52 billion, slightly above analyst projections.
Lamb Weston’s adjusted EBITDA increased 6% to $364 million compared to the same quarter last year. However, adjusted net income declined 11% to $157 million.
"We closed the quarter with sequentially improved volume trends and profitability metrics that were in line with our previously updated fiscal 2025 outlook," said Mike Smith, Lamb Weston’s president and CEO. He noted the company continues to deliver cost savings from its restructuring plan announced in October 2024.
The company reaffirmed its full-year fiscal 2025 guidance, projecting net sales of $6.35 billion to $6.45 billion and adjusted EBITDA of $1.17 billion to $1.21 billion. Lamb Weston expects adjusted earnings per share between $3.05 and $3.20 for the year.
Smith added that Lamb Weston remains on track to reduce capital spending by $250 million this fiscal year compared to fiscal 2024, with plans for an additional $200 million reduction in fiscal 2026.
During the quarter, Lamb Weston returned $151 million to shareholders through dividends and share repurchases. The company also retained AlixPartners to evaluate cost savings opportunities.
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