Lamb Weston Stock Plunges on Earnings Miss and System Change
Lamb Weston Holdings' stock plunged 19.4% after the company reported weaker-than-expected quarterly results, attributing the underperformance to challenges related to the transition to a new enterprise resource planning (ERP) system. The company's net sales grew 16% year over year to $1.458 billion, but adjusted net income decreased by 18%. Management has implemented adjustments to normalize fulfillment rates and revised its full-year outlook for net sales and adjusted earnings per share. Despite the stock's sharp decline, the company assures investors that the underperformance is a temporary issue rather than a broader market condition.