Lamb Weston Holdings, Inc. (LW) saw its stock price plummet 6.44% during intraday trading on Wednesday, as investors focused on underlying profitability concerns overshadowing the company's top- and bottom-line earnings beats.

Despite reporting third-quarter sales and adjusted earnings that exceeded analyst expectations, the frozen potato products maker revealed a 63% year-over-year drop in net income to $54 million. Adjusted EBITDA declined 27% to $271.7 million, with the international segment experiencing a particularly sharp 80% plunge in adjusted EBITDA to $18.5 million.

The company is grappling with softer market demand for its core french fry products, which led to a $32.5 million pretax charge for writing off excess raw potatoes in its international segment. Lamb Weston attributed this to "lower-than-planned sales volumes resulting from softer market demand." The company also faces activist investor pressure from Starboard Value, which recently delivered a letter to management urging more aggressive cost reductions and a strategic review of Asia Pacific operations.