- Saputo’s adjusted earnings per share (EPS) for the third quarter were C$0.39, falling short of the expected C$0.40 and down from last year’s C$0.43.
- Total revenue reached C$4.99 billion, a 16% increase year-over-year, surpassing the projected C$4.78 billion.
- Canada revenue was C$1.36 billion, up 8.9% year-over-year, exceeding the estimate of C$1.32 billion.
- USA revenue hit C$2.31 billion, marking an 18% increase compared to last year, and beating the estimate of C$2.23 billion.
- International revenue grew by 16% year-over-year to C$1.02 billion, outperforming expectations of C$908.2 million.
- Adjusted EBITDA stood at C$417 million, a 4.8% increase year-over-year, surpassing the forecast of C$406.4 million.
- The Canada sector’s adjusted EBITDA was C$175 million, growing 18% year-over-year, ahead of the estimated C$163.9 million.
- The USA sector’s adjusted EBITDA amounted to C$160 million, an 8.8% year-over-year rise, exceeding the expected C$152 million.
- Inflationary pressures are expected to ease compared to the previous fiscal year.
- Carl Colizza, President and CEO, stated that the third quarter saw the highest adjusted EBITDA performance since 2023, reaching $417 million, due to strategic execution and cost control.
- Saputo received analyst ratings of 7 buys, 3 holds, and 1 sell.
“`
A look at Saputo Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Saputo Inc. shows a positive long-term outlook. With a strong Value score of 4, the company is considered to be trading at an attractive valuation. This suggests that investors may find Saputo’s stock to be potentially undervalued compared to its intrinsic worth. Additionally, the company receives decent scores in terms of Dividend and Growth, both at a level of 3. This indicates that Saputo offers a moderate dividend yield and has potential for steady growth in the future. However, in terms of Resilience, Saputo scores a 2, implying a slightly lower ability to weather economic downturns compared to other factors. Momentum, at a score of 3, highlights a moderate upward trend in the company’s stock price movement.
Saputo Inc. is a dairy and grocery product manufacturer with a diverse range of offerings including Italian cheeses, European cheeses, North American cheeses, snack cakes, cookies, breads, and soups. The company also operates a distribution network to market imported cheeses and non-dairy products. Despite facing some challenges in terms of Resilience, as indicated by the Smartkarma Smart Scores, Saputo’s overall outlook appears positive with solid scores in Value, Dividend, Growth, and Momentum. Investors may consider Saputo as a potentially attractive investment option based on these factors indicating favorable prospects for the company’s future performance.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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