Lamb Weston Holdings, Inc. ( LW ) shares are trading higher on Thursday.

The company reported third-quarter adjusted earnings per share of $1.10, beating the analyst consensus estimate of 87 cents. Quarterly sales of $1.521 billion (up 4% year over year) outpaced the street view of $1.492 billion.

Net sales for the North America segment was up 4% versus the prior year quarter, while that in International segment jumped 5% year over year.

“As a result of the actions we took in early fiscal 2025 to drive operational and cost efficiencies, we closed the quarter with sequentially improved volume trends and profitability metrics that were in line with our previously updated fiscal 2025 outlook,” said Mike Smith, Lamb Weston’s president and CEO.

Also Read: US Stocks Likely To Open Lower Following Trump’s Tariffs: ‘Worse Than The Worst Case Scenario,’ Says Analyst

Volume increased 9% compared to the prior year quarter as the company fully replaced the combined regional, small, and retail customer volume lost in the prior year during its transition to a new ERP system.

Adjusted Gross Profit declined by $6.6 million year-over-year to $420.4 million, primarily due to unfavorable price/mix and increased transportation and warehousing costs.

Additionally, higher depreciation expenses of $16.2 million, mainly from recent capacity expansions in the Netherlands and U.S., further impacted profitability.

Adjusted EBITDA increased by $20.2 million from the prior year quarter to $363.8 million, primarily due to higher net sales.

As of February 23, the company had $67.5 million of cash and equivalents, with $1.052 billion of available liquidity under its revolving credit facility.

Outlook: Lamb Weston ( LW ) has reaffirmed its FY25 sales outlook, expecting revenue between $6.35 billion and $6.45 billion, compared with the $6.348 billion estimate. The company also projected adjusted EPS of $3.05 to $3.20, compared to the $3.08 estimate.

Price Action: LW shares are trading higher by 8.47% to $58.74 at last check Thursday.

Read Next:

Lamb Weston Posts Better-Than-Expected Results, Joins Sanofi And Other Big Stocks Moving Higher On Thursday