Lamb Weston (NYSE:LW) earnings for the food processing company’s fiscal first quarter of 2021 saw its stock take off on Wednesday. That’s due to its diluted earnings per share of 61 cents beating out Wall Street’s estimate of 30 cents. Its revenue of $871.5 million also comes in above analysts’ estimates of $869.22 million.
Here’s what else is worth noting from the most recent Lamb Weston earnings report.
- Diluted per-share earnings are down 23% from 79 cents in its fiscal first quarter of 2020.
- Revenue for the quarter comes in 12% lower than the $989 million reported during the same time last year.
- Operating income of $135.7 million is a 20% drop year-over-year from $170 million.
- The Lamb Weston earnings report also has net income coming in at $89.3 million.
- That’s a 23% decline compared to the company’s net income of $115.7 million from the same period of the year prior.
Tom Werner, president and CEO of Lamb Weston, said this in the earnings report.
“We drove sequential improvement in sales and earnings this quarter, and are optimistic about the improvement in restaurant traffic in the U.S. and our key international markets. While still below pre-pandemic levels, demand for our products in the U.S. stabilized during the latter half of our first quarter and into September as quick service restaurants rebounded, and as full-service restaurants were aided by the relaxing of government-imposed restrictions for on-premise dining, as well as increased carry-out and delivery traffic.”
Lamb Weston doesn’t provide much in the way of fiscal 2021 guidance. Instead, the company just says it expects depreciation and amortization of approximately $190 million and net interest expense of approximately $125 million.
LW stock was up 2.9% when markets closed on Wednesday.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.
