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Sentence Correction (SC) | QOTD: The company announced that its profits

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Meaning and error analysis:
The moment I saw 'had', I started making my time line.

analysts setting expectation in past >>>>>> profits declined ---- making perfect sense.


(A) had expected it to and its business will improve--- time line is correct. what it refers to ? quarter or profits or company. Should be profit. but then profit's business does not make any sense.
(B) had expected and that its business would improve --- As soon as I saw 'and that' I am looking for parallelism
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