LW Q1 Earnings Beat Estimates on Higher North America Volume

Impact · against what's priced in

Lamb Weston's Q1 beat provides limited upside as the North American volume growth it confirms is already largely expected, and the international weakness is already priced in. The primary catalyst, margin expansion, remains unproven as adjusted gross margins continued to decline to 19%.

LW+0.10

Already priced in

The price assumes

North American volume stabilization

The 6.7% North American volume growth validates the current stability the market assumes, though it doesn't yet reach the acceleration levels the market currently declines to pay for.

What LW's price assumes · Sep 24

• LW▲400%
• earnings▲<1%
• earnings surprise
• food processing
• revenue beat

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