Lamb Weston Sees Q4 Revenue Below Market, Cuts FY24 Outlook; Stock Down In Pre-market - Update

(RTTNews) - Frozen potato products supplier Lamb Weston Holdings, Inc. (LW), while reporting weak third-quarter earnings, on Thursday issued fourth-quarter revenue view, and trimmed its earnings and revenue targets for fiscal 2024, all below market estimates.

In pre-market activity on the NYSE, Lamb Weston shares were losing around 11.5 percent to trade at $89.50.

For the year, the company now expects net income of $770 million to $790 million or $5.30 to $5.45 per share. The company previously targeted a net income range of $830 million to $900 million or $5.70 to $6.15 per share.

Adjusted net income is now estimated to be $800 million to $820 million or $5.50 to $5.65 per share, compared to previous estimate of $830 million to $900 million or $5.70 to $6.15 per share.

Analysts on average expect the company to report earnings of $6.01 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

The company further updated its annual net sales target range to $6.54 billion to $6.60 billion, which includes $1.1 billion of incremental sales attributable to the consolidation of the financial results of LW EMEA during the first three quarters of the fiscal year.

The previous estimated range was $6.8 billion to $7.0 billion to reflect the higher-than-expected impact on customer order fulfillment rates.

For the fourth quarter, the company targets net sales of $1.69 billion to $1.75 billion, with growth versus the prior year quarter driven by higher price/mix.

The Street estimates sales of $6.88 billion for the year and $1.84 billion for the fourth quarter.

In the third quarter, Lamb Weston earnings totaled $146.1 million, or $1.01 per share. This compares with $175.1 million, or $1.21 per share, in last year's third quarter.

Adjusted earnings were $175 million or $1.20 per share for the period. The company's revenue for the quarter rose 16.8 percent to $1.46 billion from $1.25 billion last year.

For more earnings news, earnings calendar, and earnings for stocks, visit rttnews.com.