Lamb Weston Holdings Inc shares rose 4% to $109.15 in early Thursday trading after the frozen potato products provider raised its 2024 adjusted profit outlook to a range of $5.70 to $6.15 per share, compared with its previous guidance of $5.50 to $5.95, as the company is benefitting from higher food prices and improving supply chains.
Lamb Weston also reported better-than-expected financial results for its second quarter of fiscal 2024, generating an adjusted profit of $1.45 per share on revenue of $1.73 billion.
“We anticipate that the consumer and operating environment will remain generally stable through the remainder of fiscal 2024,” Lamb Weston Holdings CEO Tom Werner said in a statement.
As well, the company increased its quarterly dividend by 29% to $0.36 per share.
In a note to clients on Thursday, Jefferies analysts raised their target price on Lamb Weston stock by 27% to $133 per share.
Shares of Lamb Weston have gained 24% over the past year.