What Will Happen to Lamb Weston Stock After its Next Earnings Report?
Lamb Weston, a prominent global producer of frozen French fries, is set to unveil its earnings report on Thursday, April 3, 2025. Analysts are estimating earnings of $0.88 per share on revenues of $1.49 billion, a slight decline from the prior year’s $1.20 per share on sales of $1.46 billion. The company boasts a current market capitalization of $7.7 billion and has achieved revenue of $6.3 billion in the last twelve months. Operating profit stands at $742 million, with a net income of $367 million. If you are looking for opportunities with reduced volatility compared to individual stocks, the Trefis High-Quality portfolio offers a promising alternative, having outperformed the S&P 500 with returns exceeding 91% since its inception.
When it comes to positive post-earnings returns for Lamb Weston, historical data reveals some interesting trends. There have been 20 earnings data points recorded over the past five years, with a balanced split between positive and negative one-day (1D) returns at 50% each. However, the likelihood of positive returns increases to 67% when looking at data from the last three years. The median of positive returns stands at 3.6%, while the median of negative returns is -11%.
Further insights into 1-day, 5-day (5D), and 21-day (21D) returns post earnings for Lamb Weston indicate a correlation between short-term and medium-term returns. Understanding this correlation can help traders make informed decisions on their trades post-earnings. For instance, a trader can position themselves “long” for the next 5 days if the 1D post-earnings return is positive. Analyzing correlation data based on the 5-year and 3-year history can aid in executing effective trading strategies tailored to historical trends.
Peer performance can also influence post-earnings stock reactions, with pricing-in potentially starting before the earnings announcement. It is crucial to track peer performance and compare it with the performance of Lamb Weston to gauge stock reactions accurately. Historical data on Lamb Weston’s past post-earnings performance relative to peers can offer valuable insights for investors looking to understand the broader market dynamics impacting the company’s stock price post-earnings.
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