Lamb Weston Looks Promising On LTO Focus & Solid Price/Mix
Zacks Investment Research | Jan 13, 2020 09:02PM ET
Lamb Weston Holdings Inc. (NYSE:LW) has been gaining from solid top-line trend, backed by sturdy volume growth as well as gains from acquisition and favorable price/mix impacts. Moreover, the company’s focus on limited time offerings (LTOs) and expansion efforts are driving performance. Notably, this trend continued in second-quarter fiscal 2020, with the top and the bottom line increasing year on year.
In fact, management raised net sales and adjusted EBITDA guidance for fiscal 2020. It anticipates net sales to increase at high end of mid-single digit range from its previous guidance of a mid-single digits growth. Adjusted EBITDA (including unconsolidated joint ventures) is expected in the range of $965-$985 million, up from its previous guidance of $950-$970 million
Clearly, encouraging performance and a positive outlook have raised analysts’ optimism regarding the stock’s performance. Evidently, the Zacks Consensus Estimate for fiscal 2020 earnings has inched up 1.4% to $3.50 in the past 30 days. Moreover, Lamb Weston’s shares have increased 8.5% since its earnings release.
In fact, Lamb Weston’s impressive performance has been boosting investors’ sentiment for long. This Zacks Rank #2 (Buy) stock has rallied 38.3% in the past six months compared with the Original post
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