Earnings Alert: Lamb (LW), Tilray (TLRY) post solid quarterly revenue

October 07, 2021 09:27 AM PDT | By Ipsita Sarkar
 Earnings Alert: Lamb (LW), Tilray (TLRY) post solid quarterly revenue
Image source: tadamichi,Shutterstock

Highlights

  • Lamb Weston Holdings, Inc’s (NYSE:LW) net sales jumped 13% to US$984.2 million in Q1, 2021.

  • Lamb Weston’s upcoming ex-dividend date is Nov 04, 2021, for a dividend of US$0.235.
  • Tilray, Inc’s. (NASDAQ:TLRY) revenue surged by 43% YoY to US$168 million in Q1 FY22.

Food company Lamb Weston Holdings Inc. (NYSE:LW) and cannabis firm Tilray Inc. (NASDAQ:TLRY) declared strong quarterly revenue growth on Thursday. The LW stock traded at US$63.25, up 1.46%, while TLRY traded at US$11.03, up 2.22%, in the premarket at around 8 am ET.

Here we look at the quarterly performance of the two companies.

Lamb Weston Holdings, Inc.

Lamb Weston is one of the largest producers of branded frozen potato products like French fries, chips, diced potato, sweet potato fries, etc.

The Eagle, Idaho-based company earns around 80 percent of its revenue from the US, and the rest comes from other geographies like Canada, Japan, Korea, and countries in Europe.

It became an independent company in 2016 after breaking away from ConAgra.

Lamb Weston posted net sales of US$984.2 million, up 13 percent, in the first quarter ended August 29, 2021, compared to US$871.5 million in the corresponding period of 2020.

The sales contribution from the global segment was 51 percent, food service 33 percent, retail 13 percent, and others contributed 3 percent. Its income from operation declined by 56 percent YoY to US$60 million against US$135.7 million in the year-ago period.

Lamb Weston’s net income was US$29.8 million, a decline of 67 percent, compared to US$89.3 million in the same period a year ago. Its earnings per share diluted also decreased by 67 percent to US$0.20 from US$0.61 in the August quarter of 2020.

Also Read: Voyager Therapeutics (VYGR) stock jumps 56% on Pfizer licensing deal

The company expects net sales growth to remain above the low-single-digit range for FY 2022.

Its market capitalization is US$9 billion, with a P/E ratio of 28.86 and forward P/E for one year of 25.76. The dividend yield of the company is 1.51 percent, and annualized dividend is US$0.94. The next ex-dividend date is November 4, 2021, for a dividend of US$0.235.

The stock closed at US$62.34, with a share volume of 2,301,783 on Oct 6, 2021.

Also Read: Top five value stocks to consider in October

Earnings update: Lamb Weston Holdings, Inc. <a class='font-weight-bold' style='border-bottom: 2px dashed;' aria-label='https://kalkinemedia.com/us/companies/nyse-lw'  href='https://kalkinemedia.com/us/companies/nyse-lw'>(NYSE:LW)</a> and Tilray, Inc. <a class='font-weight-bold' style='border-bottom: 2px dashed;' aria-label='https://kalkinemedia.com/us/companies/nasdaq-tlry'  href='https://kalkinemedia.com/us/companies/nasdaq-tlry'>(NASDAQ:TLRY)</a> see revenue growth in their latest quarters.

Also Read: Earnings Update: Levi Strauss’ (LEVI) net revenue jumps 41% in Q3

Tilray, Inc.

Tilray produces medical and recreational cannabis. It is headquartered in New York, but Canada is its primary market. It is the top cannabis brand in Canada with the biggest market share.

Its revenue increased by 43 percent to US$168 million in the first quarter ended August 31 of FY 2022 compared to US$117 million in Q1 of the previous year. Of its four revenue segments, the cannabis segment contributed 42 percent of the total revenue. The distribution segment contributed 40 percent, Beverage alcohol 9 percent and the wellness segment 9 percent.

The gross profit increased by 46 percent to US$51 million compared to US$35 million for the same period a year ago.

Also Read: Cheap EV stocks to explore in the fourth quarter of 2021

It booked a net loss of US$34.6 million against a net loss of US$21.7 million in the comparable quarter of 2020. The loss per share diluted reduced to US$0.08 from US$0.09 in the August quarter of 2020.

In Q1, Tilray launched medical cannabis edibles in Canada. It completed the amended convertible notes acquisition in MedMen for a better footing in the US. Medmen is a cannabis retailer in the US pot market, which is currently worth around US$80 billion.

Tilray has a market capitalization of US$4.8 billion. The stock closed at US$10.79 with a share volume of 18,595,380 on Oct 6.

Also Read: Three hot growth stocks under US$1400 for income investors

Bottomline

The NYSE Composite gave a 14.10 percent return YTD, while NASDAQ Composite rose 14.32 percent YTD, indicating modest gains. On the other hand, LW fell nearly 17 percent, and TLRY rose around 20 percent YTD, underscoring the ups and downs in the market. However, investors should analyze the company fundamentals thoroughly before investing in stocks.


Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media LLC (Kalkine Media, we or us) and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures/music displayed/used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it, as necessary.


Sponsored Articles


Investing Ideas

Previous Next