Lamb Weston Rating Upgraded by Investment Research Firm
Lamb Weston stocks were recently upgraded by Zacks Investment Research analysts from a “hold” rating to a “buy” rating. They now have a USD83 price target on the stock. According to Zacks, Lamb Weston has outperformed the industry in a year, driven by its record that was retained in third-quarter fiscal 2019, Highlight Press reported.
Both top and bottom lines grew year over year and topped estimates for the tenth straight time in the fiscal third quarter. While earnings gained from higher operating income, sale was backed by strong volumes and price/mix.
The company expects the operating environment to be favorable in fiscal 2019. However, management believes transport, input, and manufacturing cost inflation to persist. Management also anticipates to face headwinds like poor potato crop at its European joint venture, though it expects to offset these through solid pricing and cost-saving initiatives.
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Last Weston recently announced its quarterly earnings data earlier this month. The frozen potato giant reported USD0.95 EPS for the quarter, beating analysts’ consensus estimates of USD0.82 by USD0.13. The company had revenue of USD926.80m during the quarter, which constitutes a 7.3% increase year-over-year, compared to the consensus estimate to USD898.46m.
The company also recently announced a quarterly dividend, which will be paid on Friday, May 31st. Investors of record on Friday, May 3rd will be paid a USD0.20 dividend. The ex-dividend date is Thursday, May 2nd. This represents a USD0.80 annualized dividend and a yield of 1.10%. Lamb Weston’s dividend payout ratio (DPR) is currently 30.08%.
