The stock market has done a good job so far of holding onto its first-quarter gains during the initial week of April, with only minimal declines after a strong start to the year. However, Wall Street seems to be having some trouble keeping up its momentum. On Thursday morning, stock index futures were down slightly, with the Nasdaq Composite leading the way lower with losses of about a third of a percent.

Some investors are waiting for the beginning of earnings season to get a read on how businesses are performing in the challenging macroeconomic environment facing them right now. However, even though the official start of earnings season isn't until next week, a pair of stocks released results that sent their shares moving higher. Below, you'll see how Lamb Weston (LW 2.57%) and Constellation Brands (STZ -4.70%) are faring under current conditions in the economy.

French fries on a table, with a packet of ketchup.

Image source: Getty Images.

Famous potatoes boost Lamb Weston

Shares of Lamb Weston Holdings were up 2% in premarket trading on Thursday morning. The maker of potato products reported fiscal third-quarter financial results for the period ended Feb. 26 that showed substantial growth in revenue and profit.

Lamb Weston's quarterly figures were impressive. Sales jumped 31% year over year to $1.25 billion. Hard work to contain costs continued to pay off as it has in past quarters, leading to operating income nearly doubling from year-ago levels. Net income jumped 64% to $175 million, working out to earnings of $1.21 per share. On an adjusted basis, profit more than doubled compared to the third quarter of the 2022 fiscal year.

In addition, Lamb Weston boosted its guidance for the remainder of fiscal 2023. The company now expects sales to come in between $5.25 billion and $5.35 billion, up by roughly $450 million from its previous projection. Adjusted earnings should be between $4.35 and $4.50 per share, which would be higher by $0.50 to $0.60 per share from its prior guidance.

Lamb Weston has done an extraordinary job of tailoring its sales mix and using its pricing power to fight back against the impact of inflation. Sales volume remained flat, but the company concentrated on high-margin businesses like large restaurant chain customers and sales through traditional retail channels in North America. That has thus far proven to be a winning strategy, and shareholders are optimistic that Lamb Weston will be able to continue generating strong bottom-line growth well into the future.

Constellation looks happy

Shares of Constellation Brands rose between 1% and 2% in premarket trading. The beer and spirits company reported its fiscal fourth-quarter financial results for the period ended Feb. 28, and shareholders were generally pleased with what they saw.

The overall numbers from Constellation Brands showed the challenges in the current environment. Fiscal fourth-quarter revenue came in just short of $2 billion, down 5% from year-ago levels. Adjusted net income of $365 million was down 19% year over year, producing adjusted earnings of $1.98 per share. For the full year, though, Constellation did manage to grow sales by 7% and eked out a 4% gain in adjusted earnings to $10.65 per share.

Constellation was particularly proud of its beer business, which grew volume for the 13th straight year and saw sales and income come in above projections. Expanding margin levels in its wine and spirits business was also positive, although Constellation's investment in marijuana stock Canopy Growth continued to generate losses.

Good times should continue for Constellation in the coming year, with the company projecting adjusted earnings of $11.70 to $12 per share and substantial free cash flow. Demand for beer, wine, and spirits tends to be inelastic even in tough times, so investors have high hopes for Constellation's staying power.