Lamb Weston Q3 2020 Earnings Report
Key Takeaways
Lamb Weston's Q3 2020 net sales increased 1% to $937 million, but income from operations declined 16% to $163 million. The company withdrew its fiscal year 2020 outlook due to uncertainties from the COVID-19 pandemic.
Net sales increased 1% to $937 million.
Income from operations decreased 16% to $163 million.
Net income decreased 21% to $111 million.
The company withdrew its fiscal year 2020 outlook due to COVID-19 uncertainties.
Lamb Weston
Lamb Weston
Forward Guidance
Lamb Weston has withdrawn its financial outlook for fiscal year 2020 due to the unpredictable impact of the COVID-19 pandemic on the global economy and restaurant traffic. The company continues to expect interest expense of approximately $110 million, an effective tax rate of approximately 24 percent, and depreciation and amortization of approximately $175 million. The company reduced its target for capital expenditures to approximately $200 million from approximately $300 million.
Positive Outlook
- Expects interest expense of approximately $110 million.
- Expects an effective tax rate of approximately 24 percent.
- Expects depreciation and amortization of approximately $175 million.
- Reduced capital expenditures target to approximately $200 million from $300 million.
Challenges Ahead
- Withdrew financial outlook for fiscal year 2020.
- Cites unpredictable impact of COVID-19 pandemic.
- Uncertainty in restaurant traffic in North America.
- Uncertainty in key international markets.