Lamb Weston (NYSE:LW) Shares Gap Down on Disappointing Earnings

Lamb Weston Holdings, Inc. (NYSE:LW - Get Free Report) shares gapped down prior to trading on Thursday following a dissappointing earnings announcement. The stock had previously closed at $78.22, but opened at $65.96. Lamb Weston shares last traded at $65.34, with a volume of 1,796,800 shares changing hands.

The specialty retailer reported $0.66 EPS for the quarter, missing the consensus estimate of $1.01 by ($0.35). Lamb Weston had a return on equity of 34.33% and a net margin of 9.57%. The firm had revenue of $1.60 billion during the quarter, compared to the consensus estimate of $1.67 billion. During the same quarter last year, the business earned $1.45 EPS. The business's revenue was down 7.5% compared to the same quarter last year.

Lamb Weston Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, November 29th. Investors of record on Friday, November 1st were paid a dividend of $0.36 per share. The ex-dividend date was Friday, November 1st. This represents a $1.44 annualized dividend and a yield of 2.30%. Lamb Weston's payout ratio is 33.80%.

Analysts Set New Price Targets

A number of research analysts have recently commented on the company. Stifel Nicolaus upped their price target on Lamb Weston from $65.00 to $80.00 and gave the stock a "hold" rating in a report on Friday, October 25th. Wells Fargo & Company upped their target price on shares of Lamb Weston from $70.00 to $77.00 and gave the company an "overweight" rating in a research note on Thursday, October 3rd. Jefferies Financial Group raised their price target on shares of Lamb Weston from $80.00 to $95.00 and gave the stock a "buy" rating in a research report on Tuesday. Deutsche Bank Aktiengesellschaft started coverage on shares of Lamb Weston in a research report on Thursday, December 12th. They set a "hold" rating and a $81.00 price objective for the company. Finally, JPMorgan Chase & Co. lifted their target price on Lamb Weston from $68.00 to $78.00 and gave the stock a "neutral" rating in a research report on Monday. One equities research analyst has rated the stock with a sell rating, seven have assigned a hold rating and six have given a buy rating to the company's stock. According to MarketBeat.com, Lamb Weston presently has a consensus rating of "Hold" and an average target price of $84.25.

Hedge Funds Weigh In On Lamb Weston

Hedge funds have recently added to or reduced their stakes in the company. Southpoint Capital Advisors LP acquired a new stake in Lamb Weston during the 3rd quarter worth $129,480,000. Clarkston Capital Partners LLC grew its stake in shares of Lamb Weston by 108.7% during the third quarter. Clarkston Capital Partners LLC now owns 3,107,929 shares of the specialty retailer's stock worth $201,207,000 after purchasing an additional 1,618,570 shares during the period. Massachusetts Financial Services Co. MA bought a new stake in Lamb Weston in the third quarter valued at about $86,883,000. TPG GP A LLC lifted its stake in Lamb Weston by 74.4% in the second quarter. TPG GP A LLC now owns 2,924,230 shares of the specialty retailer's stock valued at $245,869,000 after buying an additional 1,247,206 shares during the period. Finally, Marshall Wace LLP lifted its stake in Lamb Weston by 78.5% in the second quarter. Marshall Wace LLP now owns 1,888,556 shares of the specialty retailer's stock valued at $158,790,000 after buying an additional 830,511 shares during the period. Institutional investors own 89.56% of the company's stock.

Lamb Weston Price Performance

The company has a debt-to-equity ratio of 1.87, a quick ratio of 0.54 and a current ratio of 1.19. The company has a market capitalization of $8.91 billion, a price-to-earnings ratio of 14.67, a price-to-earnings-growth ratio of 1.34 and a beta of 0.70. The company has a 50-day moving average price of $77.11 and a 200-day moving average price of $72.83.

Lamb Weston Company Profile

Lamb Weston Holdings, Inc produces, distributes, and markets frozen potato products worldwide. The company operates through four segments: Global, Foodservice, Retail, and Other. It offers frozen potatoes, commercial ingredients, and appetizers under the Lamb Weston brand, as well as under various customer labels.