Why Lamb Weston Holdings Shares Are Rising Today
Portfolio Pulse from Nabaparna Bhattacharya
Lamb Weston Holdings, Inc. (NYSE:LW) shares rose after reporting Q2 sales of $1.732 billion, surpassing the $1.70 billion analyst consensus. Adjusted EPS of $1.45 also beat the $1.41 consensus. The company cited pricing actions, mix improvements, and supply chain savings as drivers, despite a $71 million charge for excess raw potatoes. Gross profit and adjusted income from operations increased, and adjusted EBITDA rose 15% to $376.9 million. LW repurchased $50 million in stock and paid $41 million in dividends, announcing a 29% dividend increase to $0.36 per share. The FY24 net sales target was reaffirmed at $6.8-$7.0 billion, and the diluted EPS target was raised to $5.70-$6.15. LW shares were up 0.27% to $105.21.
January 04, 2024 | 5:26 pm
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Lamb Weston Holdings reported higher-than-expected Q2 sales and EPS, increased its dividend, and raised its FY24 EPS outlook, leading to a rise in its share price.
The positive earnings report, dividend increase, and raised EPS guidance for FY24 are strong indicators of the company's financial health and future prospects, which typically result in a positive short-term impact on the stock price.
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