Lamb Weston Holdings, Inc. LW is likely to register a decline in its top and bottom lines when it reports second-quarter fiscal 2025 earnings on Dec. 19. The Zacks Consensus Estimate for revenues is pegged at $1.7 billion, which suggests a decline of 3.5% from the prior-year quarter’s reported figure. The consensus mark for earnings has moved down a couple of cents in the past 30 days to $1.05 per share, indicating a decline of 27.6% from the year-ago quarter’s reported figure. LW has a trailing four-quarter negative earnings surprise of almost 12%, on average.

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Factors to Consider Before LW's Q2 Results

Lamb Weston has been capitalizing on a strong pricing environment and seeing positive results from its Restructuring Plan, which is focused on enhancing efficiency and profitability. In addition, the company is modernizing its manufacturing capabilities to further optimize operations. These efforts, along with expanding capacity, are enabling Lamb Weston to meet the increasing demand. The continuation of these trends bodes well for the to-be-reported quarter.

Lamb Weston Price and EPS Surprise

Lamb Weston price-eps-surprise | Lamb Weston Quote

Despite its efforts, Lamb Weston is experiencing lower volumes due to customer share losses and reduced restaurant traffic. Our model predicts a 2.3% decline in volume for the fiscal second quarter. In addition, rising manufacturing costs, driven by input cost inflation for raw potatoes and other factors, present a challenge for the company.

Earnings Whispers for LW

Our proven model does not predict an earnings beat for Lamb Weston this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, this is not the case here.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Lamb Weston currently carries a Zacks Rank #4 (Sell) and has an Earnings ESP of -5.71%.

Some Stocks With the Favorable Combination

Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.

Tyson Foods TSN currently has an Earnings ESP of +1.92% and a Zacks Rank of 2.  You can see the complete list of today’s Zacks #1 Rank stocks here.

The company is likely to register growth in its top and bottom lines when it reports first-quarter fiscal 2025 numbers. The Zacks Consensus Estimate for Tyson Foods’ quarterly revenues is pegged at $13.5 billion, indicating growth of 1.2% from the figure reported in the prior-year quarter.

The Zacks Consensus Estimate for Tyson Foods’ quarterly earnings of 78 cents suggests an improvement from the 69 cents reported in the year-ago quarter. TSN has a trailing four-quarter negative earnings surprise of 57%, on average.

The Simply Good Foods Company SMPL currently has an Earnings ESP of +5.50% and a Zacks Rank of 3. The Zacks Consensus Estimate for first-quarter fiscal 2025 earnings per share is pegged at 46 cents, which implies a 7% increase year over year.

The Zacks Consensus Estimate for The Simply Good Foods Company’s quarterly revenues is pegged at $348.1 million, which indicates growth of 12.8% from the figure reported in the prior-year quarter. SMPL has a trailing four-quarter earnings surprise of 5.3%, on average.

Grocery Outlet Holding GO currently has an Earnings ESP of +2.00% and a Zacks Rank of 3. The company is likely to register a decrease in the bottom line when it reports fourth-quarter 2024 numbers. The Zacks Consensus Estimate for the quarterly earnings per share is pegged at 17 cents, down 5.6% from the year-ago period.

Grocery Outlet's top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.09 billion, which suggests an increase of 9.7% from the prior-year quarter. GO has a trailing four-quarter negative earnings surprise of 2.2%, on average.

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Tyson Foods, Inc. (TSN) : Free Stock Analysis Report

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