Lamb Weston (LW) reported earnings Tue 10 Jan 2017 (b/o)

     

• Lamb Weston (LW) was spun-off by Conagra Foods (CAG) as an independent public company on November 10, 2016.
• Lamb Weston supplies frozen potato, sweet potato, appetizer and vegetable products to restaurants and retailers, with nearly $3 billion in annual sales.

** charts after earnings **

Lamb Weston beats by $0.07, beats on revs; guides FY17 EPS above consensus, raises sales outlook :

• Reports Q2 (Nov) earnings of $0.63 per share, excluding non-recurring items, $0.07 better than the Capital IQ Consensus of $0.56; revenues rose 6.8% year/year to $790.7 mln vs the $772.1 mln two analyst estimate.
• Volume increased 4 percentage points as productivity programs and strong manufacturing plant performance stretched available capacity, allowing the Company to meet demand growth in both North America and international markets. Price/mix increased 3 percentage points due to pricing actions and favorable product and customer mix.
• Co issues upside guidance for FY17, sees EPS of $2.20-2.28, excluding non-recurring items, vs. $2.11 Capital IQ Consensus Estimate; sees net sales up mid-single digits vs. prior guidance for up low single digits. Co expects Adjusted EBITDA including unconsolidated joint ventures to grow at a mid-teens rate, up from a previous estimate of a high single digit increase, reflecting solid sales growth and savings from supply chain efficiencies, partially offset by lower contribution from equity method investment earnings. Potato costs are expected to remain essentially flat.

Lamb Weston President and CEO Tom Werner ringsa ceremonial bell after taking part in the company's IPO on the floor of the New York Stock Exchange (NYSE) in New York City, NY, U.S. November 15, 2016 (Courtesy: Reuters / Yahoo Finance)

Lamb Weston supplies frozen potato, sweet potato, appetizer and vegetable products to restaurants and retailers.