Core Viewpoint - The company, Lamb Weston Holdings, Inc. (LW), reported disappointing financial results for the fourth quarter of fiscal 2024, with significant declines in net sales and earnings, attributed to market share losses, a voluntary product withdrawal, and a slowdown in restaurant traffic across key markets [14][15]. Financial Performance - Net sales for the quarter were $1,611.9 million, down 5% year over year, missing the Zacks Consensus Estimate of $1,706.5 million [2]. - Volume declined by 8%, primarily due to market share losses and a strategic exit from lower-margin businesses in Europe [2]. - Adjusted gross profit decreased by $72.2 million to $363 million, impacted by a nearly $40 million loss from a voluntary product withdrawal and reduced sales volumes [3]. - Adjusted EBITDA fell by $50.3 million to $283.4 million, mainly due to lower net sales and adjusted gross profit [4]. Segment Analysis - In North America, sales dropped 4% to $1,113.2 million, with a volume decrease of 7% driven by a 5-percentage-point loss in market share [5]. - The International segment saw sales fall 7% to $498.7 million, with volume down 9%, influenced by market share losses and subdued restaurant traffic [19]. Guidance and Future Outlook - For fiscal 2025, the company anticipates a low-to-mid single-digit decline in volume in the first half, with expectations of favorable volume growth in the latter half as it moves beyond prior challenges [9]. - Management projects net sales between $6.6 billion and $6.8 billion for fiscal 2025, reflecting a growth of approximately 2-5% on a constant-currency basis [21]. - Adjusted EBITDA is expected to range from $1,380 million to $1,480 million for fiscal 2025 [22]. Cash and Capital Management - The company ended the quarter with cash and cash equivalents of $71.4 million and long-term debt of $3,440.7 million [7]. - In fiscal 2024, dividends paid amounted to $174 million, and stock repurchases totaled $210 million, with $390 million remaining under the current buyback plan [8].

Core Viewpoint - Lamb Weston experienced a significant decline in share price following disappointing Q4 results, but this may present a buying opportunity for investors as the market adjusts [2][15]. Financial Performance - The company's revenue for the quarter was $1.61 billion, down 5.3% year-over-year, primarily due to an 8% decline in volume, partially offset by a 3% increase in price and mix [7][15]. - The decline in revenue was attributed to a global slowdown in restaurant volumes and the exit from lower-margin businesses, which accounted for approximately 25% of the decline, with the remainder linked to a product recall [7][15]. - Adjusted earnings fell to $0.78, representing a 40% year-over-year decrease, largely due to recall expenses that impacted revenue by an estimated $40 million [9][15]. Market Sentiment and Guidance - The market reacted negatively to the company's guidance for revenue and earnings, which fell below consensus estimates, affecting overall market sentiment [5][15]. - Despite the cautious guidance, the dividend payout ratio is only 30% of the earnings guidance, indicating a stable capital return outlook [5][8]. Dividend and Shareholder Value - The annual dividend is set at $1.44, with a dividend yield of approximately 2.47%, which is at historical highs due to the recent decline in share price [8][16]. - Share repurchases have contributed to shareholder value, reducing the share count by an average of 1.2% in Q4 [10]. Long-term Outlook - Analysts suggest that the current sell-off may be overblown, positioning Lamb Weston as a deep value stock trading near historical lows, with potential for recovery as the market stabilizes [18]. - The company remains a leading supplier in the french fry market, particularly to major clients like McDonald's, which supports its long-term success [18].

Company Performance - Lamb Weston reported quarterly earnings of $0.78 per share, missing the Zacks Consensus Estimate of $1.24 per share, and down from $1.22 per share a year ago [1] - The company posted revenues of $1.61 billion for the quarter ended May 2024, missing the Zacks Consensus Estimate by 5.55%, and down from $1.69 billion year-over-year [4] - The earnings surprise for this quarter was -37.10%, following a previous surprise of -14.29% when earnings were expected to be $1.40 per share but were actually $1.20 [3] Stock Performance - Lamb Weston shares have declined approximately 27.3% since the beginning of the year, contrasting with the S&P 500's gain of 16.5% [5] - The current Zacks Rank for Lamb Weston is 4 (Sell), indicating expected underperformance in the near future [7] Industry Outlook - The Food - Miscellaneous industry, to which Lamb Weston belongs, is currently in the bottom 30% of over 250 Zacks industries, which historically underperform the top 50% by a factor of more than 2 to 1 [2] - The sustainability of Lamb Weston's stock price movement will largely depend on management's commentary during the earnings call [11] Future Earnings Expectations - The current consensus EPS estimate for the upcoming quarter is $1.48 on revenues of $1.67 billion, and for the current fiscal year, it is $6.11 on revenues of $6.76 billion [13] - The upcoming quarterly earnings are expected to be $0.23 per share, reflecting a year-over-year change of +35.3%, although the consensus EPS estimate has been revised 3.3% lower over the last 30 days [14]

International Segment Performance - International segment net sales increased by $1,003.2 million to $2,104.4 million, with $1,107.4 million attributed to the consolidation of LW EMEA and LWAMSA[1] - Excluding acquisitions, international segment net sales declined by $104.2 million, or 9 percent, with a volume decline of 15 percent[2] - Adjusted EBITDA for the international segment increased by $100.9 million to $331.9 million, driven by incremental earnings from LW EMEA consolidation[4] - The international segment saw a significant increase in sales by 91% to $2,104.4 million, driven by a volume increase of 85%[44] - International segment net sales decreased by $35.7 million, or 7 percent, to $498.7 million, with volume down 9 percent[80] Financial Performance - Net income for the fifty-two weeks ended May 26, 2024, was $725.5 million, a decrease of 28.0% compared to $1,008.9 million for the same period last year[27] - Net income for fiscal year 2024 decreased by 28% to $726 million, with diluted EPS declining by 28% to $4.98[63] - Adjusted EBITDA for fiscal year 2024 increased by 13% to $1,416.7 million[63] - Adjusted net income for Q4 2024 decreased by 40% to $113.7 million, with adjusted diluted EPS declining by 40% to $0.78[69] - The diluted EPS for the thirteen weeks ended May 26, 2024, was $0.89, reflecting a decrease from the previous year[45] Cash Flow and Capital Expenditures - Net cash provided by operating activities for fiscal 2024 was $798.2 million, an increase of $36.5 million compared to the prior year[9] - Capital expenditures during fiscal 2024 were $991.8 million, up $255.8 million, primarily for capacity expansion and ERP upgrades[9] - Cash used for capital expenditures in fiscal 2025 is expected to be approximately $850 million, focusing on capacity expansion and information systems upgrades[14] - Cash used for investing activities decreased to $984.1 million, down 26.7% from $1,340.9 million in the prior year[35] Sales and Revenue Trends - Net sales for fiscal year 2024 increased by 21% to $6,468 million, including $1,107 million from acquisitions[63] - Segment net sales for North America decreased by 4% to $1,113.2 million, while international sales decreased by 7% to $498.7 million, resulting in total segment net sales of $1,611.9 million, down 5% year-over-year[37] - In Q4 2024, net sales declined by 5% to $1,611.9 million, with volume down 8% due to market share losses and a voluntary product withdrawal[66] - The company experienced a 21% year-over-year growth in total segment net sales, reaching $6,467.6 million for the thirteen weeks ended May 26, 2024[44] Expenses and Charges - SG&A expenses increased by $151.4 million to $701.4 million, including $12.8 million related to LW EMEA integration[90] - The company recorded a $95.9 million charge for the write-off of excess raw potatoes in North America, impacting net income by approximately $72 million after-tax[27] - The implementation of a new ERP system is estimated to have reduced net sales by approximately $135 million, negatively impacting net income by about $95 million[27] - Adjusted Gross Profit declined by $72.2 million to $363.0 million, impacted by a $40 million charge from a voluntary product withdrawal and lower sales volumes[72] Debt and Equity - Long-term debt and financing obligations, excluding current portion, rose to $3,440.7 million from $3,248.4 million, an increase of 5.9%[32] - The company reported a total stockholders' equity of $1,787.8 million as of May 26, 2024, up from $1,411.3 million a year earlier, indicating a growth of 26.6%[32] - The company issued $592.0 million in debt, with repayments totaling $401.1 million, resulting in a net cash used for financing activities of $48.0 million[35] Market Outlook - The company expects fiscal 2025 net sales between $6.6 billion and $6.8 billion, reflecting growth of approximately 2 percent to 5 percent[12] - Fiscal 2025 net income is projected to be between $630 million and $705 million, with diluted EPS ranging from $4.35 to $4.85[13] - The company expects fiscal 2025 to be challenging due to a supply-demand imbalance in the market[62]

Shareholders who purchased shares of LW during the class period listed are encouraged to contact the firm regarding possible lead plaintiff appointment. Appointment as lead plaintiff is not required to partake in any recovery. CLASS PERIOD: July 25, 2023 to April 3, 2024 NEXT STEPS FOR SHAREHOLDERS: Once you register as a shareholder who purchased shares of LW during the timeframe listed above, you will be enrolled in a portfolio monitoring software to provide you with status updates throughout the lifecycl ...

Core Viewpoint - Lamb Weston Holdings, Inc. is expected to report growth in both revenue and earnings for the fourth quarter of fiscal 2024, with revenue estimates at $1.7 billion and earnings per share at $1.24, reflecting year-over-year increases [1][2]. Revenue and Earnings Estimates - The Zacks Consensus Estimate for fourth-quarter revenues is $1.7 billion, indicating a 0.8% growth from the previous year [1]. - For fiscal 2024, the revenue estimate stands at $6.6 billion, suggesting a significant growth of 22.7% year-over-year [1]. - The consensus for quarterly earnings is $1.24 per share, which is a 1.6% increase from the prior year's figure [2]. - The fiscal 2024 earnings estimate is $5.53 per share, reflecting an 18.2% increase from the previous year [2]. Growth Drivers - Lamb Weston is benefiting from effective pricing strategies and strong operational momentum, which are contributing to top-line growth [3]. - Management anticipates net sales for the fourth quarter to be between $1.69 billion and $1.75 billion, supported by improved price/mix [3]. - For fiscal 2024, net sales are expected to range from $6.54 billion to $6.60 billion, indicating year-over-year growth [3]. - The company projects a price/mix increase of 5.4% for the fourth quarter and 10.3% for fiscal 2024 [3]. Operational Enhancements - Lamb Weston is focused on improving supply chain efficiency, expanding globally, enhancing manufacturing capabilities, and improving product quality, which are key growth drivers [4]. - The company's efforts to expand capacity and enhance product offerings have positioned it well to meet rising demand for snacks and fries [4]. EBITDA and Earnings Projections - For fiscal 2024, adjusted EBITDA is expected to be between $1,480 million and $1,510 million, compared to $1,124.3 million in fiscal 2023 [5]. - Quarterly adjusted EBITDA is projected to be in the range of $350 million to $375 million, up from $309.9 million reported in the same quarter last year [5]. - Adjusted earnings per share for fiscal 2024 are anticipated to be between $5.50 and $5.65, reflecting year-over-year growth [5]. Volume Challenges - Management expects a mid-single-digit volume decline in the upcoming quarter due to soft restaurant traffic trends in North America and key international markets [6]. - The transition to a new enterprise resource planning system is also anticipated to impact volumes for some customers in North America, with a projected volume decline of 4.2% for the quarter [6]. - Rising selling, general, and administrative expenses are expected to pose additional challenges [6]. Earnings Prediction Model - The current model does not predict an earnings beat for Lamb Weston, as it has a Zacks Rank of 4 (Sell) and an Earnings ESP of -1.61% [7][8].

Core Insights - A class action lawsuit has been filed against Lamb Weston Holdings, Inc. for alleged material misrepresentations regarding its new Enterprise Resource Planning (ERP) system during the Class Period from July 25, 2023, to April 3, 2024 [5][8] - The lawsuit claims that Lamb Weston misled investors by stating that the ERP system strengthened its operational infrastructure while downplaying implementation issues as "usual bumps," leading to artificially inflated stock prices [5][8] Summary by Sections Class Action Details - Investors who purchased Lamb Weston common stock during the Class Period may be entitled to compensation without any out-of-pocket fees through a contingency fee arrangement [4] - The deadline to serve as lead plaintiff in the class action is August 12, 2024 [8] Allegations Against Lamb Weston - The lawsuit alleges that Lamb Weston made numerous material misrepresentations and omissions regarding the design and implementation of its ERP system [5] - It is claimed that the company assured investors that its financial guidance for fiscal 2024 accounted for any negative impacts from the ERP system's deployment [5] Legal Representation - Investors are encouraged to select qualified counsel with a successful track record in securities class actions [9] - The Rosen Law Firm, which is representing the investors, has a history of significant recoveries for investors, including over $438 million in 2019 alone [9]

https://securitiesclasslaw.com/securities/lamb-weston-holdings-loss-submission-form/?id=90883&from=4 NEXT STEPS FOR SHAREHOLDERS: Once you register as a shareholder who purchased shares of LW during the timeframe listed above, you will be enrolled in a portfolio monitoring software to provide you with status updates throughout the lifecycle of the case. The deadline to seek to be a lead plaintiff is August 12, 2024. There is no cost or obligation to you to participate in this case. NEW YORK, July 17, 2024 / ...

Core Viewpoint - A class action lawsuit has been filed against Lamb Weston Holdings, Inc. for alleged violations of federal securities laws during the Class Period from July 25, 2023, to April 3, 2024, involving significant issues with the implementation of a new ERP system [1][4]. Company Overview - Lamb Weston is a major producer of frozen potato products, supplying to restaurants and retailers globally, with McDonald's being one of its largest customers [3]. Lawsuit Allegations - The lawsuit claims that Lamb Weston and certain executives made false statements regarding the functionality and implementation of a new ERP system, which they knew would face significant challenges [4][8]. - The company asserted that it had "strengthened its operational infrastructure" and only faced "usual bumps" during the ERP system's implementation, misleading investors about its financial guidance for fiscal 2024 [8]. Financial Impact - Following the disclosure of significant challenges in the ERP system's transition, Lamb Weston reported a loss of $135 million in sales during Q3 of fiscal 2024 and reduced its full-year sales guidance by $330 million [14]. - The stock price of Lamb Weston fell by $19.59 per share, representing a decline of over 19% [14].

What to do next: To join the Lamb Weston class action, go to https://rosenlegal.com/submit-form/? case_id=26209 or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action. A class action lawsuit has already been filed. If you wish to serve as lead plaintiff, you must move the Court no later than August 12, 2024. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. To join the Lamb Weston class ...