Yahoo Finance Q1 Earnings Outperformers: Lamb Weston (NYSE:LW) And The Rest Of The Shelf-Stable Food Stocks
As the Q1 earnings season wraps, let's dig into this quarter's best and worst performers in the shelf-stable food industry, including Lamb Weston (NYSE:LW) and its peers.
As America industrialized and moved away from an agricultural economy, people faced more demands on their time. Packaged foods emerged as a solution offering convenience to the evolving American family, whether it be canned goods or snacks. Today, Americans seek brands that are high in quality, reliable, and reasonably priced. Furthermore, there's a growing emphasis on health-conscious and sustainable food options. Packaged food stocks are considered resilient investments. People always need to eat, so these companies can enjoy consistent demand as long as they stay on top of changing consumer preferences. The industry spans from multinational corporations to smaller specialized firms and is subject to food safety and labeling regulations.
The 21 shelf-stable food stocks we track reported a decent Q1; on average, revenues beat analyst consensus estimates by 0.5%. while next quarter's revenue guidance was 1.6% below consensus. Stocks--especially those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts, and while some of the shelf-stable food stocks have fared somewhat better than others, they collectively declined, with share prices falling 1.9% on average since the previous earnings results.
Weakest Q1: Lamb Weston (NYSE:LW)
Best known for its Grown in Idaho brand, Lamb Weston (NYSE:LW) produces and distributes potato products such as frozen french fries and mashed potatoes.
Lamb Weston reported revenues of $1.46 billion, up 16.3% year on year, falling short of analysts' expectations by 11.8%. It was a weak quarter for the company, with full-year revenue guidance missing analysts' expectations.
“The transition to a new enterprise resource planning (ERP) system in North America negatively impacted our financial results in the quarter by more than we expected,” said Tom Werner, President and CEO.
Lamb Weston delivered the weakest performance against analyst estimates and weakest full-year guidance update of the whole group. The stock is down 15.1% since the results and currently trades at $85.72.
Is now the time to buy Lamb Weston? Access our full analysis of the earnings results here, it's free.
Best Q1: Hershey (NYSE:HSY)
Best known for its milk chocolate bar and Hershey's Kisses, Hershey (NYSE:HSY) is an iconic company known for its chocolate products.
Hershey reported revenues of $3.25 billion, up 8.9% year on year, outperforming analysts' expectations by 4.5%. It was a stunning quarter for the company, with an impressive beat of analysts' revenue and earnings estimates.
The stock is down 2.2% since the results and currently trades at $191.59.
Is now the time to buy Hershey? Access our full analysis of the earnings results here, it's free.
Hain Celestial (NASDAQ:HAIN)
Sold in over 75 countries around the world, Hain Celestial (NASDAQ:HAIN) is a natural and organic food company whose products range from snacks to teas to baby food.
Hain Celestial reported revenues of $438.4 million, down 3.7% year on year, falling short of analysts' expectations by 5.4%. It was a weak quarter for the company, with a miss of analysts' organic revenue growth estimates. Looking forward, full year guidance for organic sales growth and adjusted EBITDA were lowered.
The stock is up 10.3% since the results and currently trades at $7.32.
Read our full analysis of Hain Celestial's results here.
B&G Foods (NYSE:BGS)
Started as a small grocery store in New York City, B&G Foods (NYSE:BGS) is an American packaged foods company with a diverse portfolio of more than 50 brands.
B&G Foods reported revenues of $475.2 million, down 7.1% year on year, falling short of analysts' expectations by 1.4%. It was a weak quarter for the company, with a miss of analysts' revenue and earnings estimates.
B&G Foods had the slowest revenue growth among its peers. The stock is down 20% since the results and currently trades at $9.25.
Read our full, actionable report on B&G Foods here, it's free.
Kellanova (NYSE:K)
With Corn Flakes as its first and most iconic product, Kellanova (NYSE:K) is a packaged foods company that is dominant in the cereal and snack categories.
Kellanova reported revenues of $3.2 billion, down 4.2% year on year, surpassing analysts' expectations by 1.3%. It was a mixed quarter for the company, with a miss of analysts' gross margin estimates.
The stock is up 3.6% since the results and currently trades at $59.01.
Read our full, actionable report on Kellanova here, it's free.
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