11:59 AM EDT, 07/23/2025 (MT Newswires) -- Lamb Weston ( LW ) shares soared intraday Wednesday after the company reported fiscal fourth-quarter results above Wall Street's estimates and announced a cost-savings program to enhance profitability.

The supplier of frozen potato products' adjusted per-share earnings rose to $0.87 for the quarter ended May 25 from $0.78 a year earlier. The FactSet-polled consensus estimate indicated a decline to $0.63. Sales grew 4% to $1.68 billion, while analysts projected $1.59 billion.

The stock jumped 19% in Wednesday trade, lowering its year-to-date decline to 12%.

"Lamb Weston ( LW ) returned to growth in the second half of the year with momentum in customer wins and retention, delivering financial results above our updated expectations," Chief Executive Mike Smith said in a statement. "We enter fiscal 2026 with increased discipline around our customer relationships and our cost structure, along with a clear and executable plan of how to win with customers and succeed in a dynamic marketplace."

Lamb Weston ( LW ) has identified at least $250 million of annualized run-rate savings by the end of fiscal 2028, including $200 million to be achieved by 2027.

"We believe these actions will lower our cost base and help ensure we remain competitive, while reallocating resources on a more targeted basis to invest for growth," Smith told analysts, according to a FactSet transcript.

For the current fiscal year, the company expects revenue between $6.35 billion and $6.55 billion, compared with the Street's view of $6.41 billion. Sales are expected to be stronger in the second half than the first, with contribution from a 53rd week, Chief Financial Officer Bernadette Madarieta said on the call.

The fiscal 2026 outlook takes into account continued pressure on consumers from economic and geopolitical factors, the company said.

"Our outlook assumes no improvement in global restaurant traffic from fiscal 2025 levels, but it does plan for customer momentum that began in the second half of fiscal 2025 to continue," Madarieta told analysts. "It also does not include additional impacts of evolving trade policy, including changes in tariffs and retaliatory countermeasures."

Sales in the North American segment fell 1% year on year to $1.1 billion in the most recent quarter. International sales grew 15% to $572.7 million.

Price: 58.90, Change: +9.73, Percent Change: +19.79