Lamb Weston Q2 Earnings on Deck: Key Factors You Should Understand

Lamb Weston Holdings, Inc. (LW) is likely to witness a top-line decline when it reports second-quarter fiscal 2026 earnings on Dec. 19. The Zacks Consensus Estimate for revenues is pegged at $1.59 billion, indicating a 0.5% drop from the prior-year quarter’s reported figure.

The consensus mark for earnings has moved down a penny in the past seven days to 67 cents per share. The projection indicates an increase of 1.5% from the figure reported in the year-ago quarter. LW delivered a trailing four-quarter earnings surprise of 16%, on average.

Lamb Weston Price, Consensus and EPS Surprise

Lamb Weston price-consensus-eps-surprise-chart | Lamb Weston Quote

Things to Consider About Lamb Weston’s Upcoming Results

Lamb Weston has been facing near-term pressure from unfavorable price/mix dynamics in the first half of fiscal 2026. Pricing and trade investments carried over from fiscal 2025 have continued to weigh on realized pricing, even as the company has been delivering steady volume growth and securing ongoing customer wins. Our model forecasts a 5.4% decline in price/mix for the second quarter of fiscal 2026.

Competitive intensity in international markets has been acting as a headwind. Strong potato crops, ample industry supply and softer demand in regions such as Europe and Latin America have been driving more aggressive pricing behavior. Continued customer support actions are likely to have weighed on overall performance despite resilient volume trends.

Our model forecasts a 3.2% year-over-year decline in the North America segment, while the International segment is expected to post 5.9% year-over-year growth in the second quarter of fiscal 2026.

Despite these hurdles, Lamb Weston has been seeing positive outcomes from its Restructuring Plan, which is focused on improving efficiency and profitability. In addition, the company is modernizing its manufacturing capabilities to further optimize operations. The continuation of these trends bodes well for the to-be-reported quarter.

Earnings Whispers for LW Stock

Our proven model does not conclusively predict an earnings beat for Lamb Weston this time. 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, which is not the case here.

Lamb Weston carries a Zacks Rank #4 (Sell) and has an Earnings ESP of +0.45%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

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.

Conagra Brands (CAG) currently has an Earnings ESP of +0.11% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus mark for quarterly revenues is pegged at $3 billion, which indicates a decline of 6.2% from the figure reported in the prior-year quarter. The Zacks Consensus Estimate for Conagra’s quarterly earnings per share (EPS) is pegged at 44 cents, which implies a 37.1% decrease year over year. CAG delivered a trailing four-quarter earnings surprise of 3.5%, on average.

The Hershey Company (HSY) currently has an Earnings ESP of +0.94% and a Zacks Rank of 3. The consensus estimate for Hershey’s quarterly revenues is pinned at $2.97 billion, which calls for 3% growth from the figure reported in the prior-year quarter.

The Zacks Consensus Estimate for Hershey’s upcoming quarter’s EPS is pegged at $1.39, which implies a 48.3% decrease year over year. HSY delivered a trailing four-quarter earnings surprise of nearly 15%, on average.

Philip Morris (PM) currently has an Earnings ESP of +0.20% and a Zacks Rank of 3. The consensus estimate for quarterly revenues is pegged at $10.41 billion, which calls for 7.2% growth from the figure reported in the prior-year quarter.

The Zacks Consensus Estimate for Philip Morris’ upcoming quarter’s bottom line is pegged at $1.67, which implies 7.7% growth from the figure recorded in the year-ago period. PM delivered a trailing four-quarter earnings surprise of 4.4%, on average.

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This article originally published on Zacks Investment Research (zacks.com).

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