Why Lamb Weston Holdings Stock Plunged Today
Shares of Lamb Weston Holdings (NYSE: LW) fell 19.4% on Thursday after the food processing company announced weaker-than-expected quarterly results.
For its fiscal third quarter ended Feb. 25, 2024, Lamb Weston's net sales grew 16% year over year to $1.458 billion, including $357 million of sales from its previous acquisition of its LW EMEA joint venture in Europe. On the bottom line, that translated to an 18% decrease in adjusted (non-GAAP) net income to $175 million, or $1.20 per share. Analysts, on average, were modeling adjusted earnings of $1.45 per share on revenue closer to $1.65 billion.
According to CEO Tom Werner, the transition to a new enterprise resource planning (ERP) system was largely to blame for the company's underperformance during the quarter. "The ERP transition temporarily reduced the visibility of finished goods inventories located at distribution centers, which affected our ability to fill customer orders," Werner explained.
Source Fool.com
Werner Enterprises Inc. Stock
With 10 Buy predictions and only 2 Sell predictions the community sentiment for the stock is positive.
As a result the target price of 42 € shows a positive potential of 29.63% compared to the current price of 32.4 € for Werner Enterprises Inc..
