Shares of Lamb Weston Holdings, Inc. (LW) tumbled 5.45% in pre-market trading on Thursday, despite the company reporting better-than-expected third-quarter results. The frozen potato product manufacturer posted adjusted earnings per share of $1.10, significantly surpassing the analysts' estimate of $0.87.
Lamb Weston's Q3 sales came in at $1,520.5 million, beating the consensus estimate of $1,490 million. The company's adjusted EBITDA for the quarter was $363.8 million, well above the expected $301.4 million. Despite these strong results, investors appear to be focusing on other aspects of the report or guidance.
The company provided its full-year outlook, projecting adjusted earnings per share between $3.05 and $3.20, with sales expected to range from $6,350 million to $6,450 million. It's possible that this guidance or other factors disclosed in the earnings report may have fallen short of market expectations, leading to the sharp sell-off in early trading. Investors and analysts will likely be scrutinizing the full earnings report and management's commentary for further insights into the company's performance and future prospects.
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