RTTNews | Jul 27, 2021 02:10PM EDT

14:10 Tuesday, July 27, 2021 (RTTNews.com) - Idaho-based packaged food selling company, Lamb Weston Holdings Inc (LW) is down 12% after the company posted a slower outlook despite earnings matching the analysts in the second quarter results. The stock is currently trading at $66.50, down $9.58 or 12.59%, on the NYSE.

The net income for the company turned a profit of $66 million or $0.44 per share from a loss of $2 million or $0.01 per share.

Seven analysts polled by Thomson Reuters expected an earnings of $0.44 per share for the quarter. Net revenue for the company also increased 19% to $1 billion, from $846 million last quarter.

However, the company posted a conservative outlook for the year expecting a mid-low single digit growth in revenue. According to the company, there might be volatility in the market and several factors might play roles in inflation.

"While french fry demand trends have become more predictable compared to a year ago, the lingering effects of the pandemic and the sharp recovery of the broader economy in the U.S. has disrupted supply chain operations across all industries, including ours. While we expect these disruptions to be transitory, we believe these challenges, along with notable input and transportation cost inflation and the impact of a tighter labor market, will continue to pressure our earnings in the near term," said Tom Werner, President and CEO of the company.

Read the original article on RTTNews ( https://www.rttnews.com/3212373/lamb-weston-drops-12-on-weaker-full-year-outlook.aspx)

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