Saputo Inc. reported its fiscal 2018 third-quarter results on February 1. The stock dropped by more than 3% during that day, as the dairy processor missed analysts’ estimates and is facing many challenges.
Profit boosted by tax savings, but hurt by market conditions
Following changes approved by Trump’s administration just before the holiday break, the U.S. federal corporate tax rate dropped from 35% to 21%. As a result, Saputo recorded tax savings of $179 million, which boosted its net income to $337 million, or $0.86 per share, up 70.7% compared to the third quarter of fiscal 2017.
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