Lamb Weston Stock Swoons as Demand for Frozen Potatoes Softens

Lamb Weston (LW) Chief Executive Officer (CEO) Tom Werner is "disappointed" by nan company’s fiscal fourth-quarter results, which missed profit and gross expectations, and issued a informing astir 2025.

The purveyor of stiff murphy products posted earnings per stock (EPS) of $0.89, down 74% year-over-year, connected gross of $1.61 billion, beneath expectations of $1.27 and $1.7 billion, according to statement estimates of analysts compiled by Visible Alpha. 

"We are disappointed by our fourth-quarter performance," Werner said. "Our price/mix results were beneath our expectations, while marketplace stock losses and a slowdown successful edifice postulation successful nan U.S. and galore of our cardinal world markets were greater than we expected."

CEO Expects Fiscal 2025 Will 'Be Another Challenging Year' 

Werner isn’t optimistic astir nan coming twelvemonth either.

"We expect fiscal 2025 to beryllium different challenging year," Werner said. "The operating situation has changed quickly complete nan past 12 months arsenic world edifice postulation and stiff murphy request softened owed to paper value ostentation continuing to negatively impact world edifice traffic."

Lamb Weston expects nett income of $6.6 cardinal to $6.8 cardinal successful fiscal 2025 and EPS of $4.35 to $4.85. Analysts polled by Visible Alpha are expecting $6.83 cardinal successful gross and $6.08 successful EPS.

Shares of nan institution plunged 28% to $56.54 arsenic of 1 p.m. ET Wednesday. They are down much than 47% successful 2024.