Lamb Weston (NYSE:LW) earnings for the third quarter of 2020 have LW stock falling on Wednesday afternoon. This comes after reporting revenue of $937.3 million, which is below Wall Street’s estimate of $959.19 million. The company reported adjusted earnings per share (EPS) of 77 cents, while analysts were expecting adjusted per-share earnings of 93 cents for the quarter.
LW’s earnings release had a few other points worth mentioning, including the following:
- Net income declined 21% year-over-year.
- Revenue for the quarter comes in 1.13% higher compared to $926.8 million during the same time last year.
- Operating income of $162.5 million is off 16.15% from the year-ago period.
- SG&A (selling, general and administrative) increased 8.3% YOY.
- LW returned $110.6 million through share buybacks and cash dividends, but announced it is discontinuing its share repurchase plan.
Tom Werner, president and CEO, said this about the LW stock earnings report:
“Our results in the third quarter were mixed … We drove solid growth in our Foodservice and Retail segments, but our Global segment’s sales declined due to the timing of sales of customized products and higher-margin limited time offering products, as well as the initial effects of the COVID-19 pandemic on restaurant traffic in China.”
LW’s earnings report doesn’t include its outlook for fiscal 2020, but that’s not much of a surprise at this point. Many companies are withholding their guidance in light of the novel coronavirus.
LW stock was down 12.24% as of Wednesday afternoon.
Nick Clarkson is a web editor at InvestorPlace. As of this writing, he did not hold a position in any of the aforementioned securities.