Lamb Weston was the worst-performing stock in the S & P 500 on Wednesday on the back of disappointing quarterly results. The Idaho-based supplier of frozen potato, sweet potato, appetizer and vegetable products to restaurants said fully diluted earnings per share fell more than 70% from the year-earlier period. The company also provided an outlook that missed the mark.
Here are some "highlights" from the final quarter of their 2024 fiscal year, which ended May 31: Net sales declined 5% to $1.612 billion Diluted EPS declined 74% to 89 cents Net sales increased 21% to $6.468 billion Income from operations increased 21% to $1.
065 billion Net income declined 28% to $726 million Full year diluted EPS declined 28% to $4.98 From their FY2025 Outlook (guidance): Net sales of $6.6 billion to $6.
8 billion Net income of $630 million to $705 million and diluted EPS of $4.35 to $4.85 Adjusted EBITDA of $1.
380 billion to $1.480 billion It is important to note that the increase in reported sales and income from operations is almost entirely attributable to acquisitions — not organic growth. Consequently, the stock price fell over 28% on Wednesday.
There are quite a few alarm bells going off here. There is no organic growth, and it's unlikely that management had no visibility on the disappointing price/mix a couple of months ago when they reported their fiscal third quarter results. That said, Lamb Weston is in the potato business, and while Wednesday's credit card delinquency numbers prov.