Why Is Frozen Potato Products Supplier Lamb Weston Stock Plunging Today?
Portfolio Pulse from Shivani Kumaresan
Lamb Weston Holdings Inc (NYSE:LW) shares dropped significantly after reporting Q3 FY24 sales of $1.46 billion, missing estimates of $1.645 billion. The decline was attributed to a 16% volume drop, partly due to unfilled orders from transitioning to a new ERP system. Gross profit margin contracted, and adjusted EPS fell short of expectations. The company also lowered its FY24 sales and earnings guidance due to the ERP transition's impact and soft restaurant traffic trends.

April 04, 2024 | 2:35 pm
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Lamb Weston's stock plummeted after reporting lower than expected Q3 FY24 sales and earnings, attributing the shortfall to a new ERP system transition and reduced restaurant traffic. The company also revised its FY24 guidance downwards.
The significant miss in both sales and earnings expectations, coupled with the downward revision of the FY24 guidance, directly impacts investor sentiment and stock performance. The transition to a new ERP system and its larger than anticipated negative financial impact are critical factors leading to the stock's decline.
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