American food processing company Lamb Weston (LW) is seeing shares plummet today alongside its Fiscal Q2 2025 earnings report. That’s partially due to its adjusted EPS of 66 cents, which massively missed Wall Street’s estimate of $1.01 per share. The company’s EPS is also down 54% year-over-year from $1.45.
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Also not helping matters is Lamb Weston’s revenue of $1.6 billion, which is another miss compared to analysts’ estimate of $1.67 billion. This also represents an 8% drop from its revenue of $1.73 billion reported in Fiscal Q2 2024.
Finally, Lamb Weston updated its fiscal 2025 outlook in its latest earnings report. It expects adjusted EPS to range from $3.05 to $3.20 alongside revenue between $6.35 billion and $6.45 billion. Yet again, this is bad news for the company compared to Wall Street’s estimates of $4.20 per share and $6.65 billion in revenue.
Leadership Change Rattles LW Stock
It’s not only Fiscal Q2 misses weighing on Lamb Weston shares today. The company also announced that CEO Thomas Werner is stepping down and giving up his seat on the Board of Directors. Replacing him is current Chief Operating Officer Michael Smith, who will take over as President and CEO on Jan. 3, 2025.
While Werner will relinquish the CEO role next month, he won’t be leaving Lamb Weston entirely. Instead, he will stick around until Aug. 31, 2025, as an advisor to the company. This should ensure a smooth transition between him and incoming CEO Smith.
News of the leadership change and the latest quarterly misses are dragging shares of LW stock 19.25% lower this morning. That comes after the stock fell 4.98% in normal trading hours yesterday. It also builds on a 26.27% drop year-to-date.
Is LW Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Lamb Weston is Moderate Buy based on five Buy and six Hold ratings over the last three months. With that comes an average price target of $83.50, a high of $95, and a low of $78. This represents a potential 6.75% upside for LW shares. These ratings and price targets will likely change as analysts update their coverage after today’s earnings report.
