Why Lamb Weston Stock Is Plummeting Today

Shares of leading frozen potato supplier Lamb Weston (NYSE: LW) plummeted 22% as of 11 a.m. ET on Friday after the French fry juggernaut provided underwhelming earnings again. Following today's drop, Lamb Weston is down 60% from its all-time high in 2023 and trades at its lowest share price since 2017.During the second quarter, the company grew sales by 1% and delivered adjusted earnings per share of $0.69, which beat Wall Street's expectations. However, management offered full-year guidance that spooked the market, saying that revenue would be flat year-over-year, while adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) would be down 11% at the midpoint.The good news for Lamb Weston in Q2 was that sales volume grew by 8% in North America and 7% in its international markets. However, due to strong potato crops and the continued weakness in the quick-service restaurant industry, the company saw its pricing mix drop 8% in both markets, offsetting its volume gains.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool