5 Stocks Making Moves on Quarterly Results

3. Lamb Weston Holdings, Inc. (NYSE:LW)

Number of Hedge Fund Holders: 36

Shares of Lamb Weston Holdings, Inc. (NYSE:LW) turned red on Thursday, 7 October 2021, after its fiscal first-quarter profit and sales fell short of expectations. Moreover, the company also warned investors that higher costs would continue to weigh on its earnings in the remaining year.

Lamb Weston Holdings, Inc. (NYSE:LW) reported earnings of 20 cents per share for the quarter ended 29 August 2021, significantly lower than 61 cents per share in the comparable period last year.

Revenue for the quarter rose 13 percent on a year-over-year basis to $984.2 million. Analysts were expecting Lamb Weston Holdings, Inc. (NYSE:LW) to report earnings of 37 cents per share on revenue of $1 billion.

CEO Tom Werner discussed several challenges Lamb Weston Holdings, Inc. (NYSE:LW) is facing right now. Werner said in a statement:

“The impact of extreme summer heat that negatively affected potato crops in the Pacific Northwest, combined with industrywide operational challenges, including highly inflationary input and transportation costs, labor availability, and upstream and downstream supply chain disruptions, will result in higher costs as the year progresses, and significantly pressure our earnings. Accordingly, we expect our gross profit margins to remain below pre-pandemic levels through fiscal 2022.”