Lamb Weston Projects 2022 Net Sales Growth Above Long-term Target Range

(RTTNews) - While reporting second-quarter results on Thursday, Lamb Weston Holdings, Inc. (LW) updated the company's fiscal 2022 guidance. For fiscal 2022, the company expects net sales growth will be above its long-term target of low-to-mid single digits. The company anticipates net sales growth in the second half of fiscal 2022 will be driven largely by price/mix as the recent pricing actions are more fully implemented in the market.

The company expects fiscal 2022 gross margin to be 18 percent to 20 percent, or approximately 600 to 700 basis points below its pre-pandemic gross margin of 25 percent to 26 percent. The company previously expected its full year fiscal 2022 gross margin to be 17 percent to 21 percent, or approximately 500 to 800 basis points below its pre-pandemic gross margin. The company expects net income and adjusted EBITDA including unconsolidated joint ventures will be pressured for the remainder of fiscal 2022.

Second quarter adjusted EPS declined 24% to $0.50 from $0.66, prior year. On average, seven analysts polled by Thomson Reuters expected the company to report profit per share of $0.32, for the quarter. Analysts' estimates typically exclude special items.

Net income declined 66% to $33 million. EPS declined 67% to $0.22 from $0.66.

Second quarter net sales were $1.01 billion, up 12 percent from prior year quarter, with volume and price/mix each up 6 percent. Analysts on average had estimated $997.81 million in revenue.

Shares of Lamb Weston Holdings were up 7% in pre-market trade on Thursday.