10:27 AM EDT, 04/03/2025 (MT Newswires) -- Lamb Weston ( LW ) posted better-than-expected fiscal third-quarter results on Thursday as volume gains helped offset lower prices, while the company reiterated its full-year outlook.

The supplier of frozen potato products reported adjusted earnings of $1.10 a share for the quarter ended Feb. 23, down from $1.20 the year before, but ahead of the FactSet-polled consensus of $0.86. Sales improved 4% year over year to $1.52 billion, topping the Street's view for $1.49 billion. The stock jumped 6.9% in Thursday trade.

The company recorded a volume increase of 9% and secured customer contract wins across each of its channels and geographic regions, partially offset by soft global restaurant traffic trends. Prices were down 5%, reflecting the group's investment strategy to price competitively in its North America and international segments.

"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," Chief Executive Mike Smith said in a statement. "That said, we expect headwinds from soft restaurant traffic to persist, and we continue to see opportunities to further streamline costs while investing strategically to support customers."

For fiscal 2025, Lamb Weston ( LW ) continues to project adjusted EPS to be in a range of $3.05 to $3.20 and sales to come in between $6.35 billion and $6.45 billion. The Street is currently looking for non-GAAP EPS of $3.09 and sales of $6.35 billion.

The company said its outlook doesn't reflect any impact from potential tariffs by the US government and retaliatory duties by other countries. President Donald Trump announced sweeping new tariffs on Wednesday targeting imports from several countries including China and Japan.

Sales in the North American segment, which includes the US, Canada and Mexico, increased 4% to $986.3 million in the third quarter. International sales inclined 5% to $534.2 million.

Lamb Weston ( LW ) remains on track to achieve its objective of reducing capital spending by $250 million in the ongoing fiscal year on an annual basis, according to Smith. The company anticipates an additional $200 million in capital spending reductions in fiscal 2026, leading to $450 million in overall reductions compared with fiscal 2024, the CEO added.

Price: 59.81, Change: +5.66, Percent Change: +10.44

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.