Lamb Weston (LW) Q4 Earnings & Sales Lag Estimates, Down Y/Y

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].