Author Topic: Money in Spuds, ConAgra Potato Spinoff Lamb Weston $LW Earnings Beat  (Read 855 times)

ThePitBoss

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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).

 

Guidance:

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.

Quote
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.


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ThePitBoss

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Lamb Weston $LW Earnings Conference Call
« Reply #1: January 10, 2017, 11:20:44 AM »
Lamb Weston $LW said that CapEx for FY17 will be high as it is investing in additional capacity at Boardman, Oregon and Richland, Washington facilities.

Together, these facilities will have about 350MM pounds of capacity by late calendar 2017, the company said. Regarding the capacity expansion, $LW said that it is currently in process of adding additional capacity which will be online in the back half of 2017.



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