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Lamb Weston's stock shoots higher after profit and sales beat, raised guidance

Tomi Kilgore

Shares of Lamb Weston Holdings Inc. shot up 7.3% in premarket trade Tuesday, after the frozen potato products seller to restaurants and retailers reported fiscal third-quarter earnings and sales that beat expectations and raised its full-year guidance. Net income for the quarter to Feb. 24 fell to $141.4 million, or 95 cents a share, from $156.8 million, or $1.06 a share, in the same period a year ago. Excluding non-recurring items, adjusted EPS rose to 95 cents from 91 cents, above the FactSet consensus of 83 cents. Sales increased 7% to $926.8 million, beating the FactSet consensus of $898.5 million, as global segment sales rose more than expected, foodservice sales grew in line with expectations and retail sales fell to miss expectations. For fiscal 2019, the company raised its growth outlook to "high single digits" percentage range from "mid-to-high single digits." The FactSet consensus of $3.70 billion implies 8.0% growth. The stock has edged up 0.6% year to date through Monday, while the S&P 500 has climbed 14.4%.