Lamb Weston Holdings Inc (NYSE:LW) stock rose 9.17% (As on October 5, 11:50:41 AM UTC-4, Source: Google Finance) after the company reported earnings and revenue that topped analysts’ expectations for its first quarter of FY 24. Price/mix increased 23 percent, reflecting the benefit of pricing actions across both of the Company’s business segments to counter input and manufacturing cost inflation, the timing of trade spending in North America, and favorable mix, partially offset by lower customer transportation charges. Volume declined 8 percent, primarily reflecting the Company’s decisions to exit certain lower-priced and lower-margin business as it continues to strategically manage customer and product mix. To a lesser extent, inventory destocking by certain customers in international markets and in select U.S. retail channels also pressured volumes. Volume elasticities in response to inflation-based pricing actions across the Company’s portfolio have generally been low. Adjusted Net Income was $239.5 million, up $126.2 million versus the prior year quarter. Adjusted EBITDA increased $178.2 million to $412.8 million, up 76 percent compared to the prior year quarter.

LW in the first quarter of FY 24 has reported the adjusted earnings per share of $1.63, beating the analysts’ estimates for the adjusted earnings per share of $1.08. The company had reported the adjusted revenue growth of 48 percent to $1.67 billion in the first quarter of FY 24, beating the analysts’ estimates for revenue of $1.61 billion. Excluding unrealized mark-to-market gains and losses related to commodity derivatives and items impacting comparability, gross profit increased $213.0 million, driven primarily by: benefits from pricing actions, which more than offset the impact of higher costs on a per pound basis and lower sales volumes; the timing of trade spending in North America; and incremental earnings attributable to the consolidation of the financial results of LW EMEA.

LW raised its financial outlook for fiscal 2024. For the year, the company expects Net sales of $6.8 billion to $7.0 billion, including $1.1 billion to $1.2 billion of incremental sales attributable to the consolidation of the financial results of LW EMEA during the first three quarters of the fiscal year. This is up from its prior forecast of $6.7 billion to $6.9 billion. Analysts surveyed by Capital IQ expect $6.81 billion. The frozen foods supplier said it now expects fiscal 2024 earnings of $5.47 to $5.92 per diluted share, up from its earlier guidance for $4.95 to $5.40. Three analysts polled by Capital IQ expect $5.19.