Shares of Lamb Weston Holdings, Inc. (LW) dropped 5.45% in pre-market trading on Thursday, despite the company reporting better-than-expected third-quarter earnings. The frozen potato products manufacturer's stock decline comes as investors digest the mixed results and future outlook.

Lamb Weston reported adjusted earnings per share (EPS) of $1.10 for its fiscal third quarter, significantly surpassing the analyst consensus estimate of $0.87. The company's quarterly sales also beat expectations, coming in at $1.52 billion compared to the projected $1.49 billion. However, the reported net income of $146 million and EPS of $1.03 suggest some one-time adjustments impacting the bottom line.

Despite the earnings beat, investors appear to be focusing on other aspects of the report or forward-looking statements. The company's outlook for the full fiscal year, with adjusted EPS guidance of $3.05 to $3.20 and sales projections of $6.35 billion to $6.45 billion, may have fallen short of market expectations. Additionally, concerns about rising costs, potential market saturation, or competitive pressures in the frozen food industry could be contributing to the negative sentiment.

As the market digests this information, analysts may revise their outlook on Lamb Weston. Prior to this earnings release, several analysts had adjusted their price targets for the company, with some maintaining positive ratings while others adopted a more cautious stance. The stock's performance in the coming days may depend on how investors interpret the company's ability to maintain its growth trajectory and navigate potential headwinds in the industry.