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.

Continue reading

Source Fool.com