Lamb Weston Holdings Stock Tumbles After Downgraded Outlook
The food processing company cuts its fiscal 2024 forecast due to software transition issues and soft restaurant traffic, leading to a significant stock price drop.
- Lamb Weston Holdings experienced a 19.4% stock price drop on Thursday following a disappointing fiscal third-quarter performance.
- The company's transition to a new enterprise resource planning (ERP) system was blamed for lower-than-expected sales and earnings, affecting its ability to fill customer orders.
- Adjusted net income fell 18% year over year to $175 million, with sales growing 16% to $1.458 billion, missing analyst expectations.
- Lamb Weston has revised its full-year outlook, now expecting net sales of $6.54 billion to $6.6 billion and adjusted earnings per share of $5.50 to $5.65.
- Despite the software issue being resolved, the company anticipates continued impact on its financial results, contributing to the stock's decline.
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