The stock of Lamb Weston Holdings, one of the world’s largest potato processors, recently hit a new 52-week high after its fiscal 2019 first-quarter earnings report surpassed analyst expectations. Revenue rose 12% to $915 million, driving net earnings 29% higher to $107.8 million. The company beat estimates on the top and bottom lines, marking the eighth consecutive quarter since its spinoff from Conagra Brands in November 2016 that it exceeded Wall Street’s earnings forecasts.
The maker of french fries and other food products benefited from lower tax rates, which boosted earnings by $0.10 per share, while sales were bolstered by better price and product mix, though higher volumes helped, too. Those growth rates look solid, but can the stock run higher still?
