|Lamb Weston Holdings (LW) reported its first quarterly report since becoming an independent company after food giant ConAgra Brands Inc (CAG) span it off in November. Lamb Weston was $CAG's frozen-potato line with major cusomers like McDonalds MCD and YUM.|
Earnings: Q2 profit of $87.2 million, or 59 cents a share. On an adjusted basis 63 cents a share incl $9 million in costs related to spinoff from ConAgra. Revenue jumped 7% to $790.7 million. Profit grew 19% beating expectations on tightened supply chain. Analysts polled by Thomson Reuters had forecast earnings of 55 cents on $773.6 million in revenue.
Reaction: Lamb Weston NYSE: LW PreMarket: $39.23 +6.3% (15% over spinoff at $34).
LW raised guidance for fiscal 2017 forecasting earnings of $2.20 to $2.28 and revenue growth in the mid-single digits. Analysts are expecting earnings of $2.07 per share on $3.1 billion in revenue.
Chief Executive Tom Werner said demand for frozen potato products is currently outpacing capacity, but the company plans to expand in the back half of the year.More Earnings NewsIconic WD-40 $WDFC Earnings Miss Expectations, Shares Slip 6 percent Wells Fargo (WFC) Earnings Preview JPMorgan Chase (JPM) Earnings PreviewBank of America (BAC) Preview Live From The Pit