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

The company reported fourth quarter adjusted earnings per share of 87 cents, beating the analyst consensus estimate of 64 cents.

Quarterly sales of $1.675 billion (+4% year over year) outpaced the Street view of $1.590 billion.

Also Read: Fiserv Stock Tumbles As Outlook Softens Despite Deal With TD

“Lamb Weston returned to growth in the second half of the year with momentum in customer wins and retention, delivering financial results above our updated expectations,” said Mike Smith, Lamb Weston ( LW ) president and CEO. 

Volume increased 8% compared to the prior year quarter due to contract wins across each of the company’s channels and geographic regions.

Net sales for the North America segment, which includes all sales to customers in the U.S., Canada and Mexico, totaled $1.103 billion, down 1% versus the prior-year quarter.

Net sales for the International segment were $572.7 million, up 15%.

Adjusted gross profit declined $19.5 million versus the prior year quarter to $343.5 million, due to unfavorable price/mix.

Adjusted EBITDA in the quarter under review increased to $284.9 million from $283.4 million a year ago.

As of May 25, the company had $70.7 million of cash and equivalents, with $1.166 billion of available liquidity under its revolving credit facility.

The company said that under its Focus to Win strategic plan it will implement further measures to secure at least $250 million in savings — including $200 million in annualized run‑rate efficiencies and $120 million in working‑capital improvements by the end of fiscal 2027 — and that these actions, combined with lower capital expenditures, should enhance profitability and cash flow as it enters fiscal 2026 with tighter cost discipline and a clear customer‑win strategy.

The company’s current portion of long-term debt and financing obligations expanded to $77.8 billion as of May 25, 2025, compared with $56.4 billion in the year-ago period.

Outlook: Lamb Weston ( LW ) forecasts FY2026 sales of $6.35 billion to $6.55 billion, compared with the $6.428 billion consensus estimate.

LW Price Action: Lamb Weston ( LW ) shares are trading higher by 17.25% to $57.65 at publication on Wednesday.

Read Next:

This Celsius Holdings Analyst Begins Coverage On A Bullish Note; Here Are Top 5 Initiations For Wednesday